- SEC pause on GDLC ETF may signal a broader push for consistent crypto rules.
- XRP and Cardano in GDLC raise questions as they lack individual ETF approval.
- Grayscale remains confident as SEC scrutinizes crypto ETF structure and policy.
In a surprising regulatory move, the U.S. Securities and Exchange Commission (SEC) has temporarily paused the launch of Grayscale’s Digital Large Cap (GDLC) ETF, just days after initially approving it through delegated authority. The pause has sparked widespread speculation, yet sources familiar with the matter maintain that the decision stems from routine administrative reviews rather than political interference.
Grayscale’s GDLC ETF includes a basket of cryptocurrencies such as Bitcoin, Ethereum, Solana, XRP, and Cardano. Notably, XRP and Cardano do not yet have individually approved ETFs, raising questions about broader listing standards for crypto funds.
📢 UPDATE: GREYSCALE CRYPTO ETF PAUSE IS TEMPORARY
— Coin Bureau (@coinbureau) July 4, 2025
The SEC has halted the launch of Grayscale’s GDLC ETF — but sources say it’s just a routine review of listing standards, not political.🇺🇸
The fund includes $XRP & $ADA, which still don’t have their own ETFs.🚀 pic.twitter.com/R7Fg5SKpB7
SEC’s Intentions May Be Broader Than One Fund
According to industry insiders, the pause is likely procedural. The SEC may be using the delay to refine its framework for listing crypto-based ETFs under the 19b-4 process. This process requires formal approval for new financial products before they can begin trading.
Unlike Bitcoin and Ethereum, which already have established ETFs, XRP and Cardano have yet to receive individual greenlights. Hence, the inclusion of these two assets may be causing hesitation.
Besides asset-specific concerns, the SEC might be examining the GDLC structure itself. Some believe the regulator is working to build consistent standards for multiple crypto ETFs simultaneously. This would prevent one fund from launching under outdated rules while others await approval under new ones.
Expert Views Highlight Unusual Nature of the Pause
James Seyffart, a Bloomberg Intelligence ETF analyst, remarked that the SEC’s pause was anything but routine. He suggested two possible reasons. First, the SEC may want to avoid approving any digital asset funds under the current framework until it finalizes a comprehensive policy.
Second, the structure of GDLC could involve unique elements requiring further scrutiny. Seyffart emphasized that this pause likely signals a broader strategy by the SEC to align upcoming ETF products with a uniform regulatory model.
2. The 2nd theory is that there's something the SEC wants to work on in relation to a specific aspect of $GDLC itself (like its structure?)
— James Seyffart (@JSeyff) July 2, 2025
The 19b-4 approval order comes from the division of Trading & Markets. Perhaps another division isn't ready to let this convert just yet
Grayscale Maintains Optimism Despite Delay
Despite the delay, Grayscale remains committed to launching the GDLC ETF on NYSE Arca. The firm is actively engaging with stakeholders to meet regulatory requirements and address concerns. An 8-K filing confirmed its continued efforts and confidence in gaining full approval soon.
Significantly, the pause highlights the SEC’s cautious approach to managing the fast-evolving crypto ETF landscape.
