Grayscale Investments is furious with the SEC’s decision to delay the launch of its Digital Large Cap Fund (GDLC) ETF. The GDLC, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, was initially approved, then put on hold indefinitely just 24 hours later.
Grayscale’s Legal Action
In a strongly worded letter, Grayscale’s lawyers blasted the SEC’s decision, arguing that the delay is causing significant harm to investors. They hinted at filing a petition to force the SEC to lift the hold while the agency reviews the approval. The letter emphasized that the SEC’s delay could result in the fund being automatically approved under existing regulations. They also stated their commitment to working with the SEC towards greater regulatory clarity in the crypto space.
Expert Opinion: It’s Just a Matter of Time
Scott Johnsson, a finance law expert, believes the GDLC ETF will launch eventually. He speculates that the SEC’s delay might be due to internal disagreements within the agency, rather than fundamental issues with the GDLC itself.
The Bigger Picture: SEC’s Crypto ETF Stance
While Bitcoin and Ethereum ETFs have launched in 2024, the SEC continues to hold up applications for ETFs based on other cryptocurrencies like Solana, XRP, and Dogecoin. The GDLC situation highlights the ongoing uncertainty surrounding crypto regulation in the US.