Grayscale Investments says it “remains committed” to listing its Digital Large Cap Fund (GDLC) as an ETF, despite the U.S. Securities and Exchange Commission (SEC) unexpectedly pausing the move just a day after approval.
The GDLC fund, which holds a basket of top cryptocurrencies, including nearly 80% Bitcoin, 11% Ethereum, and smaller allocations of Solana, Cardano, and XRP, was approved earlier this week for uplisting on NYSE Arca.
The approval was granted under delegated authority by the SEC’s Division of Trading and Markets but was paused the following day pending review by the full commission.
In a statement shared with the media, a Grayscale spokesperson said, “While this development was unexpected, it reflects the dynamic and evolving nature of the regulatory landscape surrounding a first-of-its-kind digital asset product like GDLC. Grayscale remains committed to pursuing the listing of GDLC as an ETP and we are working closely with key stakeholders to meet all necessary requirements.”
The sudden pause drew industry-wide attention. ETF analyst James Seyffart of Bloomberg Intelligence described the SEC’s move as “not normal.”
In a post on X, he laid out two possible reasons for the delay: “The SEC doesn’t want to let anything to launch under the 19b-4 process until they officially approve or come up with some framework for digital assets in the ETF wrapper. The second theory is that there’s something the SEC wants to work on in relation to a specific aspect of $GDLC itself (like its structure?).”
The SEC is currently reviewing a range of spot crypto ETF filings, including those for Solana (SOL), Cardano (ADA), and XRP. Industry watchers say GDLC’s approval and sudden pause could set the tone for how those upcoming ETFs are handled.
“I actually view this as extremely positive,” said Nate Geraci, president of ETF store NovaDius Wealth Management. “The delay is simply the SEC wanting to put in place formal listing framework/standards for crypto ETFs overall. Once that happens, floodgates open.”
According to an 8-K filing, Grayscale stated it “remains committed to pursuing the listing of the Fund on NYSE Arca and continues to work closely with key stakeholders to obtain approval of the application.”
Despite regulatory headwinds, Grayscale’s push to convert GDLC into a full-fledged ETF highlights growing momentum behind crypto ETFs in the U.S. as the regulatory environment evolves under the Trump administration.
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