SEC Reverses Course, Pauses Grayscale’s Bitcoin-Heavy ETF Conversion

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The SEC has put a hold on Grayscale’s plan to convert its Digital Large Cap Fund into an ETF—just 24 hours after initially approving it.

The fund, which holds a mix of Bitcoin (80%), Ethereum (11%), and other altcoins, was set to begin trading before the Commission stepped in for further review.

The delay comes as the SEC evaluates a growing list of crypto ETF applications, including those tied to Solana, XRP, and Dogecoin.

Market watchers are now questioning whether regulatory hesitancy could slow the broader adoption of crypto-based investment products.