The SEC has decided to reassess its approval for the Grayscale Digital Large Cap Fund (GDLC) to transition into an ETF, resulting in an indefinite postponement of its launch. On July 1, 2025, the SEC communicated its intention to re-evaluate the approval via a letter.

• The approval was seen as a significant move for multi-asset crypto ETFs in the US, as Grayscale would provide a regulatory structure for tracking top cryptocurrencies such as Bitcoin and Ethereum.
• The initial approval indicated the SEC’s confidence in the product’s readiness for market, but the agency has invoked Rule 431 of its Rules of Practice for further scrutiny.

Latest Update: On July 2, Eric Balchunas commented: “The upper level of the SEC has told $GDLC it can’t launch until further notification. This suggests they aim to establish standards for crypto ETP listings before allowing these products to enter the market.” — Eric Balchunas (@EricBalchunas) July 2, 2025

The GDLC fund holds $755 million in assets, primarily in Bitcoin and Ethereum, making up over 91% of its portfolio. This decision from the SEC reflects ongoing internal discussions regarding investor protection and the management of market stability. The delay aims to ensure a thorough review of the broader implications of including various altcoins, including Solana and XRP, in multi-asset products.

Key Takeaways

• The GDLC Fund contains $755 million in Bitcoin, Ethereum, Solana, XRP, and Cardano.
• Bitcoin and Ethereum comprise the majority of the GDLC fund.
• Regulatory complexities may arise from multi-asset structures compared to single-asset ETFs.

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