The U.S. Securities and Exchange Commission (SEC) is scrutinizing XRP allocations within Grayscale Digital Large Cap Fund (GDLC) and Bitwise Bitcoin and Ether Equal Weight Strategy (BITW), both holding approximately 6% of the cryptocurrency.
Public commentary on the funds will remain open until August 22. The SEC has simultaneously imposed a stay on approvals pending its evaluation, halting potential trading launches despite earlier applications.
Grayscale formally contested the SEC’s stay, arguing the regulator exceeded statutory limits by missing a mandated 240-day decision window under the Exchange Act. The firm asserts this delay should trigger automatic fund approval under applicable regulations.
Bitwise faces similar regulatory hurdles, with its fund containing 5.9% XRP also under review and subject to the SEC’s stay order.
Approval for either product would introduce the first XRP-linked exchange-traded products to U.S. markets. The SEC’s review centers on verifying compliance with securities laws prior to permitting public trading of the funds.