Sec pauses grayscale etf conversion

Edited by: Yuliya Shumai

On July 2, 2025, the U.S. Securities and Exchange Commission (SEC) issued a stay order, indefinitely pausing the conversion of Grayscale's Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). (Source: Axios, May 12, 2025; Financial Times, May 12, 2025)

The GDLC fund, holding Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), currently manages approximately $755 million in assets. The SEC's decision to pause the ETF conversion reflects ongoing deliberations within the agency regarding the regulatory framework for digital asset ETFs.

The fund's portfolio is comprised of approximately 80% Bitcoin, 11% Ethereum, 4.8% XRP, 2.7% Solana, and 0.8% Cardano. As of July 2, 2025, the SEC has not provided a timeline for lifting the stay order, leaving market participants awaiting further guidance.

Sources

  • Decrypt

  • CoinDesk

  • The Block

  • CryptoSlate

  • Cointelegraph

  • ETF.com

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