The SEC (Securities and Exchange Commission) hit the brakes on Grayscale’s plan to launch a new cryptocurrency ETF (exchange-traded fund). This fund, called GDLC (Digital Large Cap Fund), was all set to go, but the SEC put a hold on it just hours before the launch.
What’s in GDLC?
GDLC is a big deal because it’s the first multi-asset spot ETF that includes Bitcoin and Ethereum, along with XRP, Solana, and Cardano. While Bitcoin and Ethereum dominate the fund (around 80% and 11% respectively), the inclusion of XRP, Solana, and Cardano is what makes this so interesting – and controversial. The fund holds roughly $755 million in assets.
Why the Sudden Halt?
The SEC’s move is shrouded in a bit of mystery. There are two main theories floating around:
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Waiting for a Framework: The SEC might be holding off on all multi-cryptocurrency ETF launches until they create a clear set of rules for these types of funds. They may want to establish a framework before approving any more.
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Internal Concerns: Another possibility is that a different department within the SEC has some concerns about the GDLC’s structure or how it’s reporting information. This could be holding up the approval process.
What Happens Now?
The SEC’s decision is a temporary pause. Grayscale can still fight for approval, and the SEC could ultimately approve the ETF. However, there’s no set timeline for a decision, and it could take weeks or even months. For now, the launch is on hold.
The Bottom Line
While the delay is frustrating, it’s not necessarily a death sentence for the GDLC ETF. The situation is still developing, and we’ll have to wait and see what the SEC decides. At the time of writing, XRP is trading at $2.27.
