The U.S. Securities and Trade 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 by delegated authority — that means the SEC’s commissioners didn’t vote to approve the conversion, however moderately company employees gave the sign-off.
“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 evaluation the delegated motion,” the letter, addressed to the New York Stock Exchange, said. “In accordance with Rule 431(e), the July 1, 2025 order is stayed till the Fee orders in any other case.”
The SEC mentioned it could let the NYSE know “of any pertinent motion taken by the Fee.”
Any commissioner can ask that an SEC motion be reviewed. Prior to now, commissioners have requested to evaluation ETF disapprovals, for instance. The letter didn’t point out which commissioner or commissioners requested for the evaluation.
GDLC is benchmarked to CoinDesk’s CoinDesk 5 Index.
Spokespeople for Grayscale and the NYSE didn’t instantly return a request for remark.
An SEC spokesperson declined to touch upon the letter.
UPDATE (July 2, 2025, 20:05 UTC): Provides extra element, SEC declining to remark.
