SEC Greenlight Can’t Save Grayscale GDLC ETF From Unexpected Launch Hiccups

Regulators said yes—Wall Street's crypto craving hit another roadblock anyway.

Grayscale's Digital Large Cap Fund (GDLC) just got slapped with a last-minute delay, despite clearing the SEC's hurdles. The ETF was poised to give investors exposure to Bitcoin, Ethereum, and other blue-chip tokens—until operational gremlins struck.

Behind the scenes: Bureaucratic whiplash or crypto growing pains?

Sources whisper about custodial logistics snags and settlement protocol tweaks. Meanwhile, traders who'd already priced in the launch are left staring at order books—another reminder that in crypto, even 'approved' doesn't mean 'ready.'

Closing thought: When traditional finance meets decentralized assets, expect paperwork to move at blockchain speeds (read: glacial).

TLDR

• Grayscale’s GDLC ETF approved, then paused as SEC eyes full crypto ETF framework.
• SEC halts GDLC ETF launch despite approval, citing pending altcoin ETF clarity.
• Bitcoin-heavy GDLC ETF stalls as SEC reviews multi-asset crypto fund standards.
• SEC stay delays GDLC ETF; Solana, XRP, Cardano may be key to future approval.
• Grayscale’s crypto ETF awaits greenlight as SEC plans unified listing rules.

The Grayscale GDLC ETF remains on hold after receiving approval from the SEC’s Trading and Markets Division on July 1. The pause came through a stay order issued just one day later, temporarily freezing the fund’s conversion. This MOVE blocks the ETF’s transition and leaves its trading timeline uncertain, despite meeting procedural approval.

The SEC has notified the New York Stock Exchange that it will review the Division of Trading and Markets’ July 1 decision to approve the listing of Grayscale Digital Large Cap Fund LLC trust shares on NYSE Arca under Rule 431. The approval is stayed pending further action by the… https://t.co/h3z9IMCeY3

— Wu Blockchain (@WuBlockchain) July 2, 2025

Bitcoin Leads the GDLC ETF Portfolio

The GDLC ETF holds nearly 80% of its portfolio in Bitcoin, reflecting the fund’s strong alignment with the top digital asset. Grayscale designed the fund to offer diversified exposure while maintaining Bitcoin as its core holding. The ETF format would have introduced in-kind redemption, replacing the closed-end fund structure.

Although the SEC cleared the GDLC ETF under Rule 8.500-E, it added a stay that halts any immediate trading. Analysts suggest the pause is temporary and likely tied to the SEC’s broader digital asset strategy. The bitcoin allocation alone contributes to most of the fund’s $775 million in assets under management.

Ethereum Maintains Double-Digit Share in the Fund

Ethereum accounts for approximately 12% of the total holdings in the GDLC ETF. Grayscale included ethereum to strengthen the fund’s role in representing top-layer blockchain platforms. This aligns with the SEC’s previous green light for Ethereum spot ETFs, which began trading in mid-2025.

While Ethereum has already received ETF approval, its inclusion alongside altcoins may affect the GDLC ETF’s status. Some analysts believe the SEC seeks to finalize a consistent digital asset ETF framework before allowing mixed-asset products. A unified regulatory path would reduce reliance on Rule 19b-4 approvals for each new fund.

Solana, Cardano, and XRP Trigger Caution

Solana, Cardano and XRP each make up small but significant parts of the GDLC ETF. These coins collectively account for less than 10% of the portfolio. However, none currently have a spot ETF approved by the SEC.

This absence raises questions about whether the agency prefers to launch single-asset ETFs for these tokens before approving multi-asset funds like the GDLC ETF. Regulatory analysts expect Solana, XRP and cardano spot ETF approvals to occur by the end of 2025. Until that happens, their presence in GDLC could delay its ETF conversion.

Some experts believe the SEC is coordinating a synchronized rollout of altcoin ETFs to maintain fairness across applicants. This could explain why the GDLC ETF received approval and a stay simultaneously. The fund may serve as a model under a future standardized listing rule.

What’s Next for GDLC ETF?

Grayscale’s GDLC ETF may resume its path once the SEC finalizes its digital asset ETF framework. The SEC is reportedly working with exchanges to create a listing standard covering token liquidity, market cap and volume. This proposal WOULD allow quicker fund launches under Form S-1 filings.

The framework is expected to remove the need for a Rule 19b-4 process per product, making ETF launches more efficient. Grayscale’s paused status may indicate the SEC is aligning upcoming approvals under the new guidelines.

The GDLC ETF, despite approval, cannot be converted. But with final regulatory structures nearing completion, it remains positioned to enter the market once cleared. Grayscale’s multi-asset product sits in regulatory limbo, pending the next move from the Commission.