The conversion of Grayscale of his Digital Larg Cap Fund (GDLC) in an exchange -related fund (ETF) is frozen by a residence order, despite Receive approval of the Securities and Exchange Commission (SEC) on July 1.
Bloomberg ETF analyst James Seyffart said in a social media post on July 2 that the stay Blocks the conversion “for now” And that the SEC did not give a timeline for removal.
Two theories
Seyffart shared two work theories for the temporary block that came up with the approval. The first is that the staff in another division can still come across the structure of GDLC, or the SEC can give preference to every crypto list on hold until it ends a wider Rule set for token -based ETFs.
In the meantime, Bloomberg Senior ETF analyst ERIC BALCHUNAS rated that the SEC could wait for the first place ETFs that Solana, Cardano and XRP followed to hit the market before Grayscale allowed his Multi-ASET Fund.
The approval has changed NYSE Arca Rule 8,500-e, so that the units of the trust can act on the stock exchange once the operational details have been erased.
GDLC contains Bitcoin, Ethereum, Solana, XRP and Cardano. Grayscale reports approximately $ 775 million in managed assets for the product.
When the stay is lifted, the fund will switch to an in -kind creation and redemption format, to replace the current closed structure.
Standardized framework
Recent reports suggested that the SEC and American exchanges are working on drawing up a generic list standard for Token ETFs.
According to the proposal, an issue would only submit a form S-1, wait for the usual 75 days and launch if the registration comes into effect. The framework would enable emptents to bypass the current Rule 19B-4, now every product that is now needed is changing.
Seyffart called the prospect ‘very good news’ because a single standard timelines would shorten and would provide clear thresholds for market capitalization, trade volume and liquidity.
Other crypto -mand funds, including the archives submitted by Bitwise, Hashdex and Franklin Templeton, waiting for SECSCHOOKS.
Based on one of Seyffart’s theories, the regulator may wait to give GDLC full permission, so that he can approve the other ETFs under the same standards.
In particular, the deadline for a decision about the submission of Bitwise is on July 31, which could be an important date to look at and expect for the rumor framework.