SEC Delays Grayscale's XRP, SOL, and ADA ETF Launch Despite Initial Approval

The U.S. Securities and Exchange Commission (SEC) has temporarily halted Grayscale's plan to convert its Digital Large Cap Fund (GDLC) into a spot ETF, despite initially approving its accelerated listing on NYSE Arca. This unexpected decision came just one day after SEC staff cleared the fund for trading.

In a letter to the New York Stock Exchange, the SEC stated: 'Pursuant to Rule 431 of the Commission's Rules of Practice, the Commission will review the delegated action. The July 1, 2025 order is stayed until further notice.'

The GDLC fund composition includes approximately 80% Bitcoin, 11% Ethereum, with smaller allocations to Solana (2.8%), XRP (4.8%), and Cardano (0.8%). Market analysts suggest the delay may reflect the SEC's ongoing efforts to establish a regulatory framework for crypto-based exchange-traded products.

Bloomberg ETF analysts James Seyffart and Eric Balchunas speculate that the SEC wants to finalize crypto ETP listing standards before approving any '33 Act spot ETFs containing altcoins. While Bitcoin and Ethereum ETFs have received SEC approval, products tracking Solana, XRP, and Cardano remain pending. Analysts expect these altcoin ETFs may receive regulatory clearance by year-end.