The Securities and Exchange Commission has suspended the conversion of the GRAYSCAL Investment Trust digital digital fund (GLDC) into a negotiated stock market fund, despite the approval of the fund on Monday, preventing the multi-asset cryptographic product to launch until further notice.
THE Stay order Create an uncertainty around the calendar of the first launch of Crypto ETF diversified on the American market, analysts suggest that the delay can arise from the desire for the dry to establish broader digital assets before allowing new cryptographic products to negotiate.
The SEC has granted accelerated approval for GDLC to convert into an ETF merchant on NYSE Arca, according to the file. However, a separate letter from deputy secretary J. Matthew Delesdernier informed the exchange that the Commission will examine the delegated action, automatically triggering a suspension under rule 431 of the rules of practice of the Commission.
The fund follows the Coindesk 5 index and holds Bitcoin to a weighting of 80.4%, Ethereum at 11.2%, XRP at 4.8%, Solana at 2.9%and Cardano at 0.8%, according to Grayscale data on July 1. The assets under management totaled $ 754.7 million, with more than 15.8 million in progress.
James Seyffart, Bloomberg Intelligence ETF analyst, poster On X that the dry may want to avoid launching as part of the 19B-4 process until managers approve a framework for digital assets in ETF form. The analyst also suggested that the delay could be linked to specific aspects of the fund structure.
Bloomberg ETF Senior analyst Eric Balchunas offered a different theory in a separate X jobsuggesting that the delay is likely to come from the dry plans to issue Crypto ETP reporting standards before punctual ETF with alternative parts hit the market.
Approval would have marked the second multi-active crypto ETF for American investors after Hashdex launched the Nasdaq Crypto index US ETF (NCIQ) in February.
The stay prevents trade until the dry orders otherwise, according to the letter. The secretary’s office will inform the exchange of any measure taken by the agency.
