SEC Initially Approved, Then Reviewed ETF!

Yeliz Akmaca — Thu, 03 Jul 2025 07:00:12 +0000

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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SEC Decided to Mass Postpone Crypto ETF Applications!

Yigit Taha OZTURK — Wed, 12 Mar 2025 08:00:40 +0000

The cryptocurrency market was once again shaken following a series of decisions by the US Securities and Exchange Commission (SEC) on March 11, 2025. The regulatory body has postponed its rulings on a number of altcoin-based exchange-traded fund (ETF) applications. However, according to experts, these delays do not reduce the likelihood of approval within 2025. Bloomberg ETF analyst James Seyffart stated that the delays were “expected” and that approval prospects remain strong.

Details of the Postponements

The SEC has postponed decisions on several high-profile ETF applications, including Grayscale’s filings for Dogecoin (DOGE), XRP, Litecoin (LTC), and Cardano (ADA). Additionally, Canary Capital, Bitwise, and 21Shares have also seen delays in their XRP ETF applications.

The regulator further delayed decisions on Solana (SOL) ETFs submitted by 21Shares, Canary, and VanEck. The last of the altcoin-related ETF postponements was Canary Capital’s Litecoin (LTC) filing.

Other crypto ETF delays include in-kind creation and redemptions for BlackRock IBIT ETF, as well as Fidelity’s Wise Origin Bitcoin ETF (FBTC) and Fidelity Ethereum ETF (FETH). Additionally, 21Shares’ Core Ethereum ETF proposal to include staking has also been postponed.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

New Applications and Market Race Intensify

Despite these delays, the SEC has acknowledged new filings, including Grayscale’s Hedera (HBAR) ETF and Bitwise’s updated Dogecoin (DOGE) filing. Moreover, on March 11, Franklin Templeton filed an S-1 Form for its own XRP ETF, further intensifying the altcoin ETF race.

Strong Approval Odds for 2025!

Bloomberg ETF analyst James Seyffart emphasized that these delays are part of standard procedure and should not raise concerns. He also noted that Paul Atkins has yet to be confirmed as the new SEC chair, which may have influenced the delay timeline.

In February, Seyffart and Bloomberg Senior ETF Analyst Eric Balchunas published their approval probability estimates for Litecoin (LTC), Solana (SOL), XRP, and Dogecoin (DOGE) ETFs. According to their analysis, Litecoin (LTC) leads with a 90% chance of approval in 2025, followed by Dogecoin (DOGE) at 75%. Solana (SOL) has a 70% probability, while XRP holds a 65% chance of approval.

The analysts highlighted that these approval odds were below 5% before Donald Trump’s election victory in November. Since then, regulatory sentiment has shifted, significantly increasing the likelihood of ETF approvals. If the regulatory environment continues to improve in the US, these odds may rise even further.

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