Gray scale has pushed back against the US securities and exchange commission (SEK) Decision to stop the launch of its large Cap Crypto ETF, which calls the agency’s residence order both illegal and harmful to investors.
Asset Manager filed a letter to SEC on Friday in response to the unexpected break on his plan to convert the gray shell digital large cap fund (Gdlc) Into a stock exchangeed fund (ETF). SEC had already approved the conversion earlier this year, but then issued a residence order to review the approval – without explaining why.
“Gray scale, Børsen and the Foundation’s current investors suffer from damage as a result of the delay,” the company said in its letter.
GDLC ETF would have a basket of large Cap-digital assets including Bitcoin, Ether, XRP, Solana and Cardano, with about 80% of the fund currently weighted in Bitcoin. The move to convert it to a spot -Tf is part of Grayscales wider strategy to bring more crypto products to mainstream financial markets after the launch of its spot Bitcoin
Etf in January.
While SEC has not clarified its reasons for the delay, market surveys suggest that the grip is likely to be due to internal procedural issues rather than political opposition to crypto. ETF would contain Bitcoin, Ethereum, Solana, Cardano and XRP. Of these, Cardano and XRP do not currently have their own individual ETFs, and Solana just has a fund – with several applications hoping to add to this number.
Scott Johnsson, a financial lawyer and ETF expert, said in a post of X that although SEC’s steps were unusual, it probably won’t derail the fund completely.
“Given Grayscale suggested that they had productive conversations with SEC before approval, and they had made extensive changes to the rule in accordance with these discussions, my guess is that Rule 431 application was a farewell gift from Crenshaw, which acted one -sided,” he wrote, referring to SEC Commissioner Caroline Crenshaw. “This is going to be launched, it’s just a question of when IMO.”
If approved, GDLC would be the first Crypto ETF with multiple assets in the United States, giving investors exposure to a curated basket with top digital currencies without having to control wallets or custody itself.
