The Grayscale Digital Large Cap Fund (GDLC) is in the centre of high-profile after first receiving the green light by the U.S. Securities and Exchange Commission (SEC) in the background cited in the stock market (ETF), including Bitcoin (BTC), Ethher (ETH), XRP, Solana (Sun), and Cardano (ADA). However, the approval process suffered from a set-up on July 2nd due to the suspension of management.
ETF specialist and Bloomberg Intelligence analyst James Seifert explained that the delay was delayed It may be related to a lack of a clear regulatory framework For digital assets of ETFs.
Seyffart said the SEC approved the fund but attached a letter temporarily halting the conversion from GDLC to ETF. According to Seyffart, To seconds It appears not ready to launch the product under Process 19b-4 Until a specific framework for digital assets is approved or implemented in the ETF field.
Analysts added it delay It may be due to administrative issues related to the fund itself Or it has the structural aspects of GDLC. He also said that the SEC’s trading and market division gave approval, but another division is not ready to convert the background into ETFs.
According to Seyffart, GDLC “can’t become an ETF yet, but we don’t know when the SEC issued this suspension order or exactly.”
On his part, another ETF analyst, Eric Balchunas, commented that the situation was complicated. He suggested that the SEC may be waiting for the issuance of rules for the price of digital assets before allowing the launch of cryptocurrency ETFs such as GDLC.
In his opinion, the suspension is likely delayed until the SEC, which defines the criteria for funding listed on bag-based bag-based bag-based, is finished. According to Balchunas, “The most likely argument is that the SEC wants to establish standards for cryptocurrency ETFs before allowing the launch of these products in the market.”
On July 1st, SEC approved the release of the ETF. This marked a significant advancement in grayscale investments. Funds already cited in the secondary market have changed their structure to meet estimation requirements such as ETFs.
According to the details revealed, GDLC consists of 80.2% of Bitcoin, 11.39% of Ether, 4.82% of XRP, 2.78% of Solana and 0.81% of Cardano. The fund’s positions will be restructured quarterly and can be adjusted according to the SEC’s acceptance of new cryptocurrencies.
However, on July 2, the SEC stopped authorizing the ETF due to suspected management errors detected in the process, like reported encryption.
This set-off in the approval process created uncertainty, but analysts agree that it remains likely that the ETF was eventually approved. The fact that Grayscale received an initial approval order It suggests that final approval is near.
