SEC Halts Grayscale Massive Cap Fund Approval for ‘Evaluate’

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The U.S. Securities and Alternate Fee’s leaders are reviewing the company’s recent approval of a Grayscale effort to transform a fund into an exchange-traded fund (ETF), a letter dated July 1 mentioned.

The SEC allowed Grayscale to uplist the Digital Massive Cap Fund (GDLC), which holds $755 million in bitcoin

, Ethereum , XRP , Solana and Cardano , into an ETF via delegated authority — that means the SEC’s commissioners didn’t vote to approve the conversion, however slightly company employees gave the sign-off.

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“This letter is to inform you that, pursuant to Rule 431 of the Fee’s Guidelines of Observe, 17 CFR 201.431, the Fee will evaluate the delegated motion,” the letter said. “In accordance with Rule 431(e), the July 1, 2025 order is stayed till the Fee orders in any other case.”

Any commissioner can ask that an SEC motion be reviewed. Up to now, commissioners have requested to evaluate ETF disapprovals, for instance.

GDLC is benchmarked to CoinDesk’s CoinDesk 5 Index.





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