The US Securities and Exchange Commission probably stopped the launch of Grayscale Digital Large Cap Fund (Gdlc) For administrative reasons, not political, several people who are familiar with the case told Coindesk.
SEC approved GDLC to transfer as a stock exchange fund (ETF) Tuesday through the employees’ delegated authority, which means that the regulator’s commissioners did not have to vote on the application. Nevertheless, the regulator Grayscale and New York Stock Exchange-GDLC’s lister-Wednesday informed that SEC’s commissioners will review the approval and pause in GDLC’s Go-Live date in the meantime.
GDLC is based on Coindesk Indices’ Coindesk 5 index.
Stopping the launch gives SEC time to develop listing standards for other ETFs that would launch under the same mechanism, the individuals said.
There is also the fact that GDLC contains two digital assets – XRP
And Cardano – who currently does not have their own individual ETFs. Two of the other assets in the basket, Bitcoin and Ethereum, have had their own ETFs since 2024, and SEC has even previously okay with funds containing both of these assets. Solana also saw her first ETF launch earlier this week, although applications to other ETFs bound to the asset remain during SEC review.
SEC faces deadlines later this year for XRP, ADA and Sun applications.
James Seyffart, Bloomberg Intelligence Etf analyst, Coindesk told SEC’s break was “not normal.” In a post of X, he wrote that there are two potential reasons behind the move.
“SEC does not want to let anything to start during the 19B-4 process until they officially approve or come up with some framework for digital assets in the ETF wrapping.” The other option, he wrote, is that SEC wants to work on something compared to a specific aspect of the fund itself, for example the structure.
In a statement, a gray scale spokesman said that SEC’s break “was unexpected” but “reflects the dynamic and evolving nature of the regulatory landscape around a first-of-Sin-stroke digital asset product as GDLC.”
“Grayscale remains obliged to pursue the list of GDLC as ETP, and we work closely with the most important stakeholders to meet all the necessary requirements. We will provide additional updates as further information becomes available,” the spokesman said.
An 8-K filing from Grayscale said the company “remains obliged to pursue the list of the Fund on NYSE ARCA and continues to work closely with the most important stakeholders to get the application approval.”
