The SEC Halts Grayscale’s Cryptocurrency ETF Conversion Midway

Key Points

1. Grayscale's digital large cap fund (GDLC), which holds ADA, XRP, and SOL, received approval for ETF conversion but was later halted by the SEC.

2. Bloomberg expert James Seyffart shared updates indicating the SEC approved the ETF but did not permit its conversion, causing a temporary freeze.

3. The GDLC fund's deadline was July 2, and the SEC chose to approve it under the 19b-4 process rather than reject it outright.

4. The SEC's decision leaves the timeline for lifting the 'waiting' order on the ETF conversion uncertain.

5. The approval order for GDLC came from the SEC's Trading & Markets division, citing the fund's dominant assets (over 90%) and existing Bitcoin approval.