The United States Securities and Exchange Commission (SEC) has decided to temporarily halt the approval of the Grayscale Digital Large Cap (GDLC) ETF, creating uncertainty in the cryptocurrency market.
Reasons for the ETF Approval Hold
The initial approval was issued by lower-level SEC staff on July 1, 2025, but the file has since been escalated for review by all five commissioners. This procedural shift aims to centralize responsibility for cryptocurrency-based securities within the SEC’s upper management.
Prospects for GDLC ETF
Bloomberg analyst James Seyffart noted that launching multi-asset ETFs could be premature, especially given the absence of independent ETF approvals for XRP and ADA. However, GDLC may eventually obtain a listing, provided the Commission does not identify any structural issues.
Regulatory Implications and Next Steps
The suspension of GDLC ETF approval has tempered expectations for multi-asset cryptocurrency ETFs but has increased the likelihood of regulatory clarity for the sector. Grayscale continues to update its documents and engage in stakeholder consultations. According to Eric Balchunas from Bloomberg, the delay is not permanent, and GDLC will reemerge as an agenda item once SEC guidelines are released.
The halt in approval of the Grayscale Digital Large Cap ETF highlights the need for clearer regulatory standards for cryptocurrency products and creates a new dynamic for expectations in the industry.
