Grayscale has pushed again towards the U.S. Securities and Change Fee’s (SEC) determination to halt the launch of its large-cap crypto ETF, calling the company’s keep order each illegal and dangerous to buyers.
The asset supervisor filed a letter with the SEC on Friday in response to the sudden pause on its plan to transform the Grayscale Digital Giant Cap Fund (GDLC) into an exchange-traded fund (ETF). The SEC had already accepted the conversion earlier this yr however then issued a keep order to evaluate the approval — with out explaining why.
“Grayscale, the Change and the Fund’s present buyers are struggling hurt on account of the delay,” the corporate mentioned in its letter.
The GDLC ETF would maintain a basket of large-cap digital belongings together with bitcoin, ether, XRP, solana and cardano, with round 80% of the fund at the moment weighted in bitcoin. The transfer to transform it right into a spot ETF is a part of Grayscale’s broader technique to deliver extra crypto merchandise to mainstream monetary markets, following the launch of its spot bitcoin
ETF in January.
Whereas the SEC has not clarified its causes for the delay, market watchers recommend the maintain is probably going as a result of inner procedural points, moderately than political opposition to crypto. The ETF would maintain Bitcoin, Ethereum, Solana, Cardano and XRP. Of those, Cardano and XRP do not at the moment have their very own particular person ETFs, and Solana simply has one fund — with a number of functions hoping so as to add to this quantity.
Scott Johnsson, a monetary lawyer and ETF skilled, mentioned in a submit on X that though the SEC’s transfer was out of the unusual, it seemingly gained’t derail the fund solely.
“Given Grayscale was suggesting that they had productive talks with the SEC previous to approval, they usually had made intensive amendments to the rule proposal according to these discussions, my guess is the Rule 431 utility was a parting present from Crenshaw performing unilaterally,” he wrote, referring to SEC Commissioner Caroline Crenshaw. “That is going to launch, it’s only a matter of when imo.”
If accepted, GDLC could be the primary multi-asset crypto ETF within the U.S., giving buyers publicity to a curated basket of high digital currencies with no need to handle wallets or custody themselves.
