Grayscale ‘remains committed’ to pursuing conversion of crypto ETF following SEC’s pause

The Block

2025-07-04 02:54:57

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Following the U.S. Securities and Exchange Commission's decision to put a pause on the Grayscale Digital Large Cap Fund LLC, a spokesperson for the company says it "remains committed" to continue trying to list.

"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," a spokesperson said in an emailed statement. "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."

Earlier this week, the SEC approved Grayscale's proposal to convert another one of its closed-end funds into an ETF on an "accelerated basis. The fund trades over the counter for accredited investors and is composed primarily of Bitcoin at almost 80% and Ethereum at about 11%. Solana, Cardano, and XRP are also represented with single-digit percentages, according to its website.

A day after approving the fund, the agency put a pause on it. In a letter sent to the New York Stock Exchange about the fund, SEC Deputy Secretary J. Matthew DeLesDernier said the agency's Division of Trading and Markets granted that approval, but said the commission would review it.

This comes as the SEC is also considering a wide array of crypto ETFs, from ones that track SOL to DOGE in the face of a friendlier regulatory environment for crypto following President Donald Trump's inauguration in January. Some have signaled that approval of the Grayscale Digital Large Cap ETF could mean that those ETFs could also be approved.

"See where this is all heading? Individual spot xrp, sol, ada, etc ETFs up next," said Nate Geraci, president of NovaDius Wealth Management in a post on X on Tuesday.

"I actually view this as extremely positive," Geraci said Thursday, noting that the delay "is simply SEC wanting to put in place formal listing framework/standards for crypto ETFs overall. Once that happens, floodgates open."

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