SEC Halts Grayscale Fund's Conversion to ETF for Further Review

According to PANews, the U.S. Securities and Exchange Commission (SEC) has decided to pause the conversion of the Grayscale Digital Large Cap Fund into an exchange-traded fund (ETF) just a day after initially approving it. The SEC stated that further examination is necessary. Additionally, the SEC is currently reviewing several cryptocurrency ETF proposals, which include assets such as Solana (SOL), XRP, and Dogecoin (DOGE). Previously, on July 2, the SEC had expedited the approval of Grayscale's proposal to convert another closed-end fund into an ETF. This fund is primarily composed of Bitcoin, accounting for approximately 80%, and Ethereum, making up about 11%, with smaller allocations in Solana, Cardano, and XRP. The fund is currently available for trading in the over-the-counter market for qualified investors. Earlier reports indicated that the SEC had approved an amendment to convert the Grayscale Digital Large Cap Fund into an ETF.