Grayscale ETF Faces Indefinite Delay as SEC Reassesses Earlier Approval

It only took one day for the US Securities and Exchange Commission (SEC) to walk back on an approval given to Grayscale Digital Large Cap Fund (GDLC) to convert to an exchange-traded fund (ETF), inadvertently halting its launch.

On 1 July 2025, the SEC shared a letter stating its intention to again review the recent approval granted to GDLC to convert its fund into an ETF.

The SEC’s approval of the Grayscale ETF had been welcomed as a landmark development for multi-asset crypto ETFs in the US. For the uninitiated, Grayscale brings a regulatory structure to a product that tracks Bitcoin, Ethereum, and other leading tokens by converting its multi-asset crypto fund.

The regulatory body’s initial approval indicated that its authorities were confident in the product’s readiness for the market. Nonetheless, it has decided to invoke Rule 431 of the SEC’s Rules of Practice to review its earlier decision.

Breaking news from yesterday and thoughts

– Despite initial clearance from the SEC, it recently hit pause on plans to convert Grayscale’s Digital Large Cap Fund into an ETF

The temporary pause doesn’t necessarily mean denial, it’ll trigger further review, to assess: Market… https://t.co/apyNUx2D62

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