The US Securities and Exchange Commission (SEC) has temporarily suspended the conversion of Grayscale's Digital Large Cap Fund into an ETF, just one day after its staff approved the fund's listing.
In a letter to the New York Stock Exchange, SEC Deputy Secretary J. Matthew DeLesDernier stated that although the Division of Trading and Markets had granted approval, the Commission would now review the decision. The order has been suspended under Rule 431(e) until further notice.
The fund, which invests primarily in Bitcoin (80%) and Ethereum (11%), along with smaller allocations to Solana, Cardano, and XRP, was set to become an ETF after receiving expedited approval on Tuesday.
The SEC is also reviewing other crypto ETF proposals, including those tracking SOL, XRP, and DOGE.