The U.S. Securities and Exchange Commission (SEC) has put a temporary halt on the ETF conversion of the Grayscale Digital Large Cap Fund LLC. This decision comes merely a day after the fund was approved to commence trading.
In a correspondence addressed to the New York Stock Exchange on Wednesday, J. Matthew DeLesDernier, the SEC Deputy Secretary, stated that the commission’s Division of Trading and Markets had initially approved the conversion. However, the commission has now decided to revisit this approval.
“Pursuant to the Rule 431(e), the order dated July 1, 2025, is on hold until further notice from the Commission,” the SEC explained in the letter. “The Office of the Secretary will communicate any relevant action undertaken by the Commission.”
On Tuesday, the SEC had fast-tracked Grayscale’s bid to transfigure another one of its closed-end funds into an ETF. This fund is primarily composed of Bitcoin (almost 80%) and Ethereum (about 11%). It also includes minimal percentages of Solana, Cardano, and XRP and is available for over-the-counter trading to accredited investors, Grayscale’s website reveals.
Grayscale did not immediately respond to a request for a comment on this development, and an SEC spokesperson refrained from commenting on any individual fund. The SEC is also considering numerous requests for crypto ETFs, ranging from those tracking SOL to XRP to DOGE.
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