Grayscale GDLC ETF Launch Delayed by SEC Despite Initial Approval

In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) has delayed the launch of Grayscale Investments’ Digital Large Cap Fund (GDLC) as an exchange-traded fund (ETF), just a day after granting initial approval. This unexpected move has left investors and industry experts puzzled, as the fund was set to become a pioneering multi-asset crypto ETF.

Grayscale, a leading digital asset manager, had filed to convert its Digital Large Cap Fund into an ETF, aiming to provide broader market accessibility to cryptocurrency investments. The fund includes a diversified basket of digital assets, making it a highly anticipated product for investors seeking exposure to multiple cryptocurrencies like Bitcoin and Ethereum through a single vehicle.

The SEC’s decision to issue a stay order has put the conversion and trading debut of the GDLC ETF on hold indefinitely. According to reports, the regulator is working toward establishing a unified framework for multi-asset crypto funds, which may have prompted this sudden pause. This development has sparked discussions about the regulatory challenges facing crypto ETFs in the U.S.

Industry analysts, including Bloomberg ETF expert James Seyffart, have expressed surprise at the SEC’s abrupt halt, especially given the prior greenlight on July 1, 2025. The delay raises questions about the future of similar products and whether other firms will face comparable regulatory hurdles.

Grayscale has yet to release an official statement regarding the delay, but the crypto community remains optimistic that this is a temporary setback. The conversion of GDLC into an ETF is seen as a critical step toward integrating digital assets into mainstream finance, and stakeholders are hopeful for a resolution soon.

For now, investors eagerly awaiting the GDLC ETF will need to exercise patience as the SEC navigates the complexities of regulating innovative financial products in the rapidly evolving cryptocurrency landscape. Updates on this story are expected as more information becomes available.