The U.S. Securities and Exchange Commission (SEC) has issued a stay order halting Grayscale’s conversion of its Digital Large Cap Fund into a spot crypto ETF, delaying its anticipated NYSE listing.
This fund uniquely combines exposure to five leading cryptocurrencies, including Bitcoin, Ethereum, Solana, XRP, and Cardano, broadening investor access to diverse digital assets.
According to COINOTAG sources, the SEC’s internal divisions are currently reviewing critical components of the fund, signaling a cautious regulatory approach amid evolving crypto ETF frameworks.
SEC halts Grayscale’s crypto ETF launch, delaying NYSE listing amid internal reviews; fund includes Bitcoin, Ethereum, Solana, XRP, and Cardano exposure.
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Grayscale’s ambitious plan to transition its Digital Large Cap Fund into a spot cryptocurrency ETF has encountered a significant regulatory roadblock. Despite initial approval, the SEC issued a stay order that suspends the fund’s listing on the New York Stock Exchange. This move underscores the agency’s cautious stance on crypto ETFs, especially those encompassing multiple digital assets. The stay order was formally communicated to the NYSE Group, indicating that the SEC is undertaking a comprehensive review of the delegated approval. This pause effectively postpones Grayscale’s market entry, reflecting the complexities involved in regulating innovative crypto investment products.
The Digital Large Cap Fund’s inclusion of five major cryptocurrencies represents a strategic diversification uncommon among existing crypto ETFs. While Bitcoin and Ethereum are established assets within the sector, the addition of Solana, XRP, and Cardano introduces exposure to emerging and sometimes controversial tokens. Notably, XRP and Cardano have previously faced regulatory scrutiny, which adds layers of complexity to the fund’s approval process. Bloomberg analyst James Seyffart highlighted that although the ETF conversion was approved under the SEC’s 19b-4 process by the Division of Trading and Markets, other SEC divisions may be reassessing the fund’s structure or timing, contributing to the current stay.
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Source: https://en.coinotag.com/sec-stay-order-delays-grayscale-bitcoin-etf-listing-amid-ongoing-regulatory-review/