{"id":35009,"date":"2025-07-03T11:17:00","date_gmt":"2025-07-03T11:17:00","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=35009"},"modified":"2025-07-03T11:17:00","modified_gmt":"2025-07-03T11:17:00","slug":"altcoin-etf-basket-by-grayscale-delayed-in-controversial-sec-move","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=35009","title":{"rendered":"Altcoin ETF Basket by Grayscale Delayed in Controversial SEC Move"},"content":{"rendered":"
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The U.S. Securities and Exchange Commission (SEC) has hit pause on Grayscale Investments\u2019 application to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund, only a day after greenlighting it.<\/p>\n

The abrupt stay has thrown cold water on immediate trading plans and created some uncertainty about the anticipated expansion of crypto-based exchange-traded products.<\/p>\n

First Approval, Then Sudden Stop<\/h2>\n

Acting under delegated authority, the SEC\u2019s Division of Trading and Markets had granted accelerated approval on July 1 for NYSE Arca\u2019s rule change, which was necessary to list and trade shares of the GDLC ETF.<\/p>\n

This go-ahead<\/a> was widely reported yesterday as a landmark move, converting Grayscale\u2019s existing closed-end GDLC fund into one of the first regulated ETFs offering exposure to a diversified basket of major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA).<\/p>\n

Analysts like Nate Geraci had heralded it as a potential \u201ctest run<\/a>\u201d that could pave the way for future single-asset altcoin ETFs, and trading was expected to begin imminently, pending final operational steps.<\/p>\n

However, ETF expert James Seyffart later flagged<\/a> a letter from Deputy Secretary J. Matthew DeLesDernier, also dated July 1, that was attached to the approval. It explicitly stated:<\/p>\n

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\u201cPursuant to Rule 431 of the Commission\u2019s Rules of Practice, the Commission will review the delegated action. In accordance with Rule 431(e), the July 1, 2025 order is stayed until the Commission orders otherwise.\u201d<\/p>\n<\/blockquote>\n

According to Seyffart, the stay prevents Grayscale from converting the fund \u201cat this time,\u201d despite the initial approval.<\/p>\n

Analysts Weigh In<\/h2>\n

With the sudden delay leaving the community scratching its head, Seyffart offered a couple of theories that could explain the decision.<\/p>\n

First, he speculated that internal coordination issues between different SEC departments may be at play. \u201cPerhaps another division isn\u2019t ready to let this convert just yet,\u201d the analyst posted, suggesting there may be some structural issues with GDLC itself that could be under review.<\/p>\n

In another post, he suggested that the financial watchdog may be holding off on any launches under the existing rule-changing system until it puts in place a more comprehensive regulatory structure for crypto ETFs.<\/p>\n

\n

\u201cThe SEC doesn\u2019t want to let anything to launch under the 19b-4 process until they officially approve or come up with some framework for digital assets in the ETF wrapper,\u201d wrote the expert.<\/p>\n<\/blockquote>\n

This aligns with information shared<\/a> on X by journalist Eleanor Terrett, who revealed that the agency was in the \u201cearly stages of creating a listing standard for token-based ETFs.\u201d<\/p>\n

While the regulator\u2019s criteria are still unknown, Terrett speculated they could include market cap, trading volume, and liquidity. According to her, issuers will be allowed to skip the 19b-4 process if their tokens meet the soon-to-be-created threshold.<\/p>\n

Seyffart\u2019s Bloomberg colleague, Eric Balchunas, also concurred<\/a>, saying:<\/p>\n

\n

\u201cMy guess tho: They want to issue the crypto ETP listing standards before any \u201933 act spot ETFs hit market with these other coins.\u201d<\/p>\n<\/blockquote>\n

However, the industry watchers both agree that the delay is most likely temporary, with Seyffart writing, \u201cIt can\u2019t convert YET, but it will.\u201d<\/p>\n

The post Altcoin ETF Basket by Grayscale Delayed in Controversial SEC Move<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) has hit pause on Grayscale Investments\u2019 application to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund, only a day after greenlighting it. The abrupt stay has thrown cold water on immediate trading plans and created some uncertainty about the anticipated expansion of crypto-based exchange-traded […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-35009","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35009"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35009\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}