Yeliz Akmaca 
The SEC has taken a closer look at the spot ETF approval given to Grayscale’s Digital Large Cap Fund (GDLC). The preliminary approval, granted on July 1, 2025, for trading on the NYSE Arca exchange, has been temporarily suspended upon request from commission members. This decision initiates a new review phase in the fund’s process of converting to an ETF.
Grayscale’s fund is based on the CoinDesk Large Cap Index, which includes Bitcoin, Ethereum, Solana, XRP, and Cardano. With an asset pool of approximately $755 million, GDLC offers investors broad exposure to major cryptocurrencies.
Meanwhile, 85% of the fund’s assets are already represented by SEC-approved spot ETFs. This ratio indicates compliance with regulatory standards. Additionally, NYSE Arca has provided a structure compliant with Rule 8.500-E, which is required for the ETF to be listed.
What Does GDLC ETF Approval Mean?
Grayscale had previously made a significant step by converting its Bitcoin Trust fund into an ETF. Now, with GDLC, it aims to launch a second ETF focused on altcoins. This development allows for the diversification of spot ETFs and broader investor participation in the market.
The suspension of approval by the SEC suggests a detailed review process before the fund can gain permanent ETF status. The commission will make a final decision after internal discussions. During this process, the fund’s structure and risk distribution will be reassessed.
Experts highlight that most assets in GDLC are already included in approved ETFs. This fact is one of the strongest arguments supporting Grayscale’s application. Moreover, this development opens the path for Solana, Cardano, and XRP in the spot ETF space. According to Bloomberg analysts, the SEC is now more likely to give the green light to altcoin ETFs.
Has a New Era Started in Crypto ETF Processes?
The suspension of Grayscale GDLC ETF is not just about one company’s process but has the potential to affect the direction of the entire sector. Institutional investors, in particular, find it easier to enter the crypto market with approved products.
At the same time, interest in crypto asset ETFs may increase following the SEC’s decision. Such developments are crucial for investors in terms of both trust and accessibility. Ultimately, Grayscale’s application has become a test case for the market. The SEC’s decision will directly influence other altcoin-focused ETF applications as well.
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