US SEC hits pause on Grayscale crypto ETF conversion
Quick Take
- The U.S. Securities and Exchange Commission put a pause on converting the Grayscale Digital Large Cap Fund LLC a day after agency staff greenlit the fund to begin trading.
- The SEC is also weighing dozens of proposals for crypto ETFs from ones tracking SOL to XRP to DOGE.
The U.S. Securities and Exchange Commission put a pause on converting the Grayscale Digital Large Cap Fund LLC a day after agency staff greenlit the fund to begin trading.
In a letter sent to the New York Stock Exchange on Wednesday, SEC Deputy Secretary J. Matthew DeLesDernier said the agency's Division of Trading and Markets granted that approval, but said the commission would review it.
"In accordance with Rule 431(e), the July 1, 2025 order is stayed until the Commission orders otherwise," the SEC said in the letter. "The Office of the Secretary will notify you of any pertinent action taken by the Commission."
The SEC approved Grayscale's proposal to convert another one of its closed end funds into an ETF on an "accelerated basis" on Tuesday. The fund trades over the counter for accredited investors and is composed primarily of bitcoin at almost 80% and Ethereum at about 11%. Solana, Cardano, and XRP are also represented with single-digit percentages, according to its website.
Grayscale did not immediately respond to a request for comment. An SEC spokesperson declined to comment on any individual fund.
The SEC is also weighing dozens of proposals for crypto ETFs from ones tracking SOL to XRP to DOGE.
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