SEC Halts Grayscale GDLC ETF Approval a Day Post Green Light
The regulatory landscape for multi-asset crypto Exchange-Traded Funds (ETFs) is currently in a state of flux, following the U.S. Securities and Exchange Commission's (SEC) decision to put a hold on the approval of Grayscale's Digital Large Cap Fund (GDLC) ETF.
**Initial Approval and Subsequent Delay**
On July 2, 2025, the SEC initially approved the conversion of Grayscale’s Digital Large Cap Fund into a multi-asset ETF, marking a significant shift by including not just Bitcoin and Ethereum but also altcoins like Solana (SOL), Cardano (ADA), and XRP. However, just one day later, the SEC put the approval on hold, citing the need for further review by the Commission itself[3][4].
**Regulatory Testing Ground**
The GDLC ETF is seen as a regulatory test case. Its approval and subsequent review are viewed as steps towards broader acceptance of multi-asset crypto ETFs, setting a precedent for future products and signalling the SEC’s evolving approach to digital assets[2][4].
**Analysts’ Outlook for Altcoin Spot ETFs**
Analysts at Bloomberg, including Eric Balchunas and James Seyffart, have updated their approval odds for a range of crypto ETFs. For certain altcoins—especially those with significant liquidity, CFTC-regulated futures, and clear commodity classification—they assign as high as 95% odds for spot ETF approval in 2025[1]. The second half of 2025 is considered pivotal, with several altcoin ETFs nearing potential approval. However, the SEC’s current focus on establishing a standardized regulatory framework could delay the launch of new multi-asset or individual altcoin spot ETFs until these procedures are in place[1][4].
**Summary**
The SEC’s approval of multi-asset crypto ETFs like Grayscale’s GDLC is currently on pause for further review, driven by a need to clarify regulatory standards. Analysts expect a strong chance of altcoin spot ETF approvals in late 2025, especially for major, well-established tokens, but this is contingent on the SEC finalizing its regulatory framework[1][3][4].
Key Points:
- The SEC has paused the approval of Grayscale's Digital Large Cap Fund ETF. - The GDLC ETF's approval and subsequent review are seen as steps towards broader acceptance of multi-asset crypto ETFs. - Analysts expect a strong chance of altcoin spot ETF approvals in late 2025, especially for major, well-established tokens. - The SEC's current focus on establishing a standardized regulatory framework could delay the launch of new multi-asset or individual altcoin spot ETFs. - The GDLC ETF holds a basket of top cryptocurrencies, with Bitcoin and Ethereum making up nearly 90% of the portfolio. - The regulatory status of multi-asset crypto ETFs is currently in flux.
- The regulatory hold on Grayscale's Digital Large Cap Fund (GDLC) ETF, which includes cryptocurrencies like Bitcoin, Ethereum, Solana, Cardano, and XRP, is indicative of the ongoing regulatory flux for multi-asset crypto Exchange-Traded Funds (ETFs).
- Analysts anticipate a high probability, around 95%, for the approval of altcoin spot ETFs in the second half of 2025, provided that these digital assets have significant liquidity, CFTC-regulated futures, and clear commodity classification.
- The current focus of the SEC on establishing a standardized regulatory framework for cryptocurrencies may potentially delay the launch of new multi-asset or individual altcoin spot ETFs until this system is fully in place, impacting the investing landscape of the financial technology sector.
