The U.S. Securities and Exchange Commission (SEC) has suspended the conversion of Grayscale's Digital Large Cap Fund into an exchange-traded fund (ETF) for further review. This decision comes after an initial approval, and the fund, which tracks the CoinDesk 5 Index and holds assets like Bitcoin, Ethereum, Solana, XRP, and Cardano, was intended to be listed on the NYSE Arca platform as a spot ETF.
This comes after repeated delays and failure to deliver regulation in June. Insiders we spoke to have an explanation: there is no consensus inside the Sec on how to treat Altcoins ( see our analysis in a previous newsletter)
This follows president trumps exhortation to get things done already. The SEC has not given in to this pressure and rightly so as the decision whether to treat crypto projects like other equities would be a monumental one, causing panic and disruption, while a separate asset class is hard to justify.
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