SEC Delays Grayscale’s XRP, SOL, and ADA ETF Trading Despite Approval
The U.S. Securities and Exchange Commission (SEC) has temporarily halted trading of Grayscale’s Digital Large Cap Fund (GDLC) as a spot ETF on NYSE Arca, despite initially approving the conversion. This move reflects the SEC’s cautious stance toward cryptocurrency ETFs, particularly those including altcoins like XRP, Solana (SOL), and Cardano (ADA).
GDLC Fund Composition
The GDLC fund’s holdings are primarily:
- Bitcoin (BTC): 80%
- Ethereum (ETH): 11%
- Solana (SOL): 2.8%
- XRP: 4.8%
- Cardano (ADA): 0.8%
Understanding the SEC’s Decision
Analysts suggest the delay stems from the SEC’s ongoing efforts to develop a regulatory framework for digital asset ETFs. Bloomberg’s James Seyffart noted, “The SEC appears unwilling to approve new products until establishing clearer guidelines for crypto-based ETFs.”
Market Implications
While this postponement creates short-term uncertainty, many experts anticipate SEC approval of such products by year-end. This decision could significantly influence how traditional markets integrate digital assets moving forward.
