Grayscale has responded to the SEC’s unexpected delay regarding the launch of its large-cap crypto ETF, asserting the agency’s decision is illegal and harming investors.

Key Points:

• Grayscale has submitted a letter to the SEC insisting that the commission lacks the authority to delay the GDLC ETF launch.
• The SEC had approved the transition of GDLC but issued a stay order without any public justification.
• Analysts believe the delay is likely just a procedural formality, rather than a sign of political resistance.

Grayscale claims that the SEC’s decision leaves current investors and the company at a disadvantage. The GDLC ETF is expected to cover a range of high-cap digital assets such as Bitcoin, Ether, XRP, Solana, and Cardano, with Bitcoin constituting about 80% of the fund.

While the rationale for the SEC’s hold has not been communicated, market analysts speculate that internal procedural concerns are the driving force behind it. If authorized, GDLC could mark the first multi-asset crypto ETF available in the United States, providing investors with diversified exposure to top digital currencies without the hassles of managing individual wallets or custodial requirements.

In a comment, Scott Johnsson pointed out that although the SEC’s course of action appears rare, it is unlikely to derail the fund’s progress entirely. He emphasized that previous communications with the SEC were productive, and the anticipated approval of the ETF is only a matter of time.