Grayscale Pushes Back Against SEC’s ETF Delay
Grayscale isn’t happy with the SEC—and they’re not staying quiet about it. The cryptocurrency asset manager has officially appealed the regulator’s decision to put the brakes on its planned ETF, which would bundle together Bitcoin, Ethereum, Solana, XRP, and Cardano. The fund was supposed to start trading earlier this month, but the SEC hit pause, saying it needed more time to review things. Grayscale, though, thinks that’s unfair—and maybe even against the rules.
In a letter to the SEC, the company argued that the delay is hurting investors who were counting on the fund going live. “The exchange and the fund’s existing investors are being harmed,” Grayscale wrote. They didn’t mince words, either: if the SEC doesn’t budge, legal action might be next.
Why the Sudden Hold-Up?
The weird part? The SEC had already given the green light. On July 1, they approved Grayscale’s Digital Large Cap Fund (GDLC), an ETF set to trade on NYSE Arca under the ticker “GDLC.” But within days, the agency reversed course, saying it needed to take a closer look. Grayscale’s response? That’s not how this is supposed to work.
The company claims Congress set clear timelines for these kinds of approvals, and the SEC’s delay—justified or not—might be overstepping. “The Commission’s internal regulatory rules can’t be used to circumvent a law established by Congress,” Grayscale said. It’s a strong stance, and one that suggests this fight could drag on.
What’s Actually in the Fund?
If it ever gets off the ground, the GDLC ETF would be heavily weighted toward Bitcoin, making up about 80% of the fund. Ethereum comes in second at 11%, while XRP, Solana, and Cardano trail behind with smaller slices—4.8%, 2.8%, and 0.8%, respectively.
That mix isn’t surprising—Bitcoin and Ethereum dominate most crypto portfolios—but the inclusion of Solana and Cardano is interesting. Both have had their share of regulatory headaches, which might explain why the SEC is being cautious. Still, Grayscale seems convinced the fund is ready to go.
For now, though, investors are stuck waiting. And if the SEC doesn’t move soon, this could end up in court. Whether that’s a bluff or a real threat, we’ll have to see.
*This isn’t investment advice, just the latest twist in the ongoing tug-of-war between crypto firms and regulators.
