US SEC to Review Decision to Approve Grayscale Fund ETF Conversion

Doohyun Hwang

Summary

The U.S. Securities and Exchange Commission (SEC) announced that it has temporarily suspended the decision to approve the ETF conversion of the Grayscale Digital Large Cap Fund (GDLC).
As a result, the effective approval for listing and trading of GDLC will remain suspended until the SEC Commission makes its final decision.
Grayscale expressed its dismay regarding the SEC's decision, stating it would continue efforts to list the fund by cooperating with key stakeholders.

The U.S. Securities and Exchange Commission (SEC) has temporarily suspended the decision to approve the ETF conversion of Grayscale Digital Large Cap Fund (Grayscale Digital Large Cap Fund, GDLC).

On the 1st (local time), the SEC stated in a public notice sent to the New York Stock Exchange that "The Division of Trading and Markets promptly approved the listing under delegated authority, but the Commission subsequently decided to review the matter at the Commission level." As a result, the approval will be suspended until the Commission’s final decision is made.

Previously, the Division of Trading and Markets approved a rule change allowing the listing and trading of GDLC shares, which consist of Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).

Grayscale expressed its dismay at the decision. The Grayscale spokesperson said in a statement, "We did not anticipate this decision from the SEC," adding, "We will work closely with key stakeholders to continue the push for the listing of the GLDC."