Grayscale, an asset management giant, is challenging the U.S. Securities and Exchange Commission's (SEC) decision to pause its fund launch.
Challenged SEC Decision
Grayscale filed a letter with the SEC in response to the unexpected pause on its plans to transform the Grayscale Digital Large Cap Fund (GDLC) into a spot ETF.
"Grayscale, the Exchange, and the Fund’s current investors are suffering harm as a result of the delay in public launch of the Fund," the company stated.
GDLC Fund Structure
The GDLC primarily comprises Bitcoin, accounting for 80% of its underlying assets. Another 11% of its holdings are in Ether, while Solana, XRP, and Cardano account for 2.8%, 4.8%, and 0.8% of the fund, respectively.
Future Steps by Grayscale
Grayscale's lawyers are contemplating filing a petition to force the regulator to allow its fund to begin trading as soon as possible.
"Grayscale and the Exchange are therefore considering whether to file a petition requesting the Commission to lift the stay imposed by Rule 431(e) while the Commission reviews the action taken by delegated authority," they posited.
According to current legislation, Grayscale claims that the fund's approval should stand by default, and the company continues to take actions to protect its investors' interests.
