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SEC Delays Grayscale’s Large-Cap Crypto ETF Launch Despite Approval Order
In a surprise move, the Securities and Exchange Commission (SEC) has delayed the launch of Grayscale’s proposed large-cap cryptocurrency exchange-traded fund (ETF), despite granting initial approval for the listing and trading of the fund on NYSE Arca earlier this week.
As reported by CryptoBriefing, the SEC approved Grayscale’s proposal to convert its Digital Large Cap Fund (GDLC) into a spot ETF. However, in a subsequent letter dated July 1, the regulator notified NYSE Group that it would conduct a review of the recent approval granted under delegated authority.
This review automatically pauses the effectiveness of the decision, placing the proposed ETF launch on hold until the review is complete. Industry experts suggest that the delay may be tied to the SEC’s ongoing efforts to establish new listing standards for crypto exchange-traded products.
“Bloomberg ETF analysts Eric Balchunas and James Seyffart suggested the delay may be related to the SEC’s desire to develop a framework for digital assets in the ETF wrapper before allowing any ’33 Act spot ETFs with other coins,” stated Bloomberg.
Source: cryptobriefing.com
