XRP, Solana, Cardano On Ice—SEC Freezes Grayscale GDLC ETF Debut
Main Idea
The SEC has halted the conversion of Grayscale’s Digital Large Cap Fund (GDLC) into an ETF, pausing its listing on NYSE Arca due to regulatory review, particularly concerning its inclusion of XRP, Solana, and Cardano.
Key Points
1. The SEC issued a stay on Grayscale’s GDLC ETF conversion, preventing its listing on NYSE Arca until further review.
2. GDLC holds $755 million, with roughly 8% allocated to XRP, Solana, and Cardano—tokens the SEC has not classified as commodities.
3. Analysts speculate the SEC may be delaying multi-coin ETFs until a comprehensive digital-asset ETP framework is finalized.
4. The SEC’s Division of Trading & Markets approved GDLC’s conversion, but another division may have raised concerns about its structure or disclosures.
5. The stay is procedural under Rule 431, allowing the Commission to review the decision, but does not guarantee the ETF will ultimately be rejected.
Description
The US Securities and Exchange Commission has abruptly halted the conversion of Grayscale Investments’ Digital Large Cap Fund (GDLC), which contains XRP, Solana and Cardano besides BTC and ETH, into an exchange-traded fund, less than twenty-four hours after agency staff had granted the necessary rule change. In a one-page letter dated 1 July, Deputy Secretary J. Matthew DeLesDernier informed the New York Stock Exchange that, “pursuant to Rule 431 of the Commission’s Rules of Practice … the Commi...
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