SEC delays launch of Grayscale Crypto ETF despite prior approval, citing need for standards

The SEC has paused Grayscale Investment Trust’s Digital Large Cap Fund (GLDC) conversion to an ETF, despite prior approval, delaying the launch indefinitely. The delay could be due to the SEC wanting to establish digital asset listing standards before new crypto products can trade.

The SEC granted accelerated approval for GDLC to become an ETF trading on NYSE Arca, but a stay was triggered under Rule 431 due to a review of the delegated action. The fund holds Bitcoin at 80.4%, Ethereum at 11.2%, XRP at 4.8%, Solana at 2.9%, and Cardano at 0.8%.

Analysts suggest the delay may be related to the SEC’s desire for broader digital asset listing standards before allowing new crypto products to trade. The SEC may also be waiting to issue crypto ETP listing standards before spot ETFs with alternative coins hit the market.

The approval of the GLDC ETF would have been the second multi-asset crypto ETF for U.S. investors, following the launch of the Nasdaq Crypto Index US ETF (NCIQ) in February. The stay order prevents trading until further notice, with the SEC to notify the exchange of any updates.

Read more at Yahoo Finance: SEC Delays Grayscale Crypto ETF Launch Despite Approval