Key dealers
- The department for trade and markets, which act under the delegated authority, approved the rule change to note GDLC, but the Commission intervened and reviewed the approval.
- The approval now remains in anticipation of a final decision by the entire Commission.
Grayscale’s effort to convert its Digital Large Cap Fund (GDLC) to a spot ETF made progress this week after Sec on Tuesday granted approval for listing and trade in the fund at NYSE ARCA.
Nevertheless, investors will have to wait longer, as its debut has temporarily been delayed.
On one letter Dated July 1, the Sec NYSE group announced that it would conduct a review of the latest approval granted under the delegated authority. During Assignment rulesSuch a review automatically pauses the efficiency of the decision and places the proposed ETF launch in waiting until the review is complete.
Bloomberg ETF analyst Eric Balchunas and James Seyffart suggested that the delay may be bound to Sec’s ongoing efforts to establish new listing standards for crypto-exchange-traded products.
“SEC does not want to let anything be launched during the 19B-4 process until they officially approve or come up with some framework for digital assets in the ETF cover,” Seyffart proposed.
“They want to issue Crypto ETP listing standards before any ’33 Act Spot ETFs hit the market with these other coins, ‘Balchunas speculated.
The GDLC Fund, which tracks a marketing-weighted basket with top digital assets, is one of Graysscale’s attempt to offer investors diversified investment options through a regulated fund structure.
From July 1, the fund had about $ 755 million in managed assets, with a portfolio covering Bitcoin, Ethereum, XRP, Solana and Cardano.
