SEC Temporarily Suspends Grayscale's Altcoin ETF Approval

On July 1, 2025, the SEC quickly approved the Grayscale Digital Large Cap Fund (GDLC) to convert into an ETF, including Bitcoin, Ethereum, XRP, Solana, and Cardano, but shortly after, suspended this order indefinitely. This surprising move on Wall Street has raised speculation about crypto ETF regulations.

SEC suspends Grayscale ETF

The SEC approved the conversion of GDLC (80% Bitcoin, 12% Ethereum, under 5% XRP, 3% Solana, 1% Cardano) into an ETF on Tuesday, but a letter from SEC leadership suspended this order, according to

#Bloomberg . James Seyffart believes the SEC wants to finalize the crypto ETF regulatory framework before allowing trading. Eric Balchunas agrees, predicting that the SEC may approve #ETFaltcoin by the end of 2025. Another hypothesis is internal conflict within the SEC, as the Trading and Markets Division supports it but another department calls for adjustments.

Market Context

The crypto market reached $3.2 trillion, with ETF inflows of $15.1 billion in 2025 (CoinShares). The SEC has approved Bitcoin and Ethereum ETFs but has not opened the door for $XRP , Solana, and Cardano. The GENIUS Act supports stablecoins, but altcoin regulations remain vague, causing delays.

Impact on the Crypto Market

Altcoin ETF delays: The suspension reduces trading expectations for XRP, Solana, and Cardano.

Increased transparency: The SEC's new regulatory framework could boost institutional confidence.