The U.S. Securities and Exchange Commission (SEC) has announced the suspension of the approval for listing shares of Grayscale Digital Large Cap Fund LLC on NYSE Arca, originally scheduled for July 1, 2025.
Overview of SEC Decision
The SEC had previously approved the Grayscale fund listing under an amendment to Rule 8500-E via an expedited approval process. However, the commission recently decided to reconsider this decision under the authority of its Office of Trading and Markets.
Composition of Grayscale Fund
The Grayscale Digital Large Cap Fund consisted of approximately 80% Bitcoin (BTC), 11% Ethereum (ETH), and single-digit percentages of Solana (SOL), Cardano (ADA), and XRP. These shares were intended to be traded on digital assets at NYSE Arca.
Next Steps by SEC
In its official notice, the SEC stated that the approval process is paused and the listing will not proceed until the commission makes a final decision. The commission's secretariat announced it will inform NYSE and relevant parties about any new decisions during the review process.
The suspension of the approval for Grayscale Digital Large Cap Fund listing highlights the SEC's cautious approach to regulating digital assets and their trading on exchanges.
