Grayscale Urges SEC to Approve Multi-Crypto Fund

Grayscale is challenging the U.S. Securities and Exchange Commission (SEC) regarding its decision to halt the launch of its multi-crypto fund, arguing that investors are currently experiencing harm due to this delay. In a letter sent this week to key SEC officials, including the director of the Division of Trading and Markets, Grayscale's legal team urged the agency to follow the congressional guidelines that set deadlines for product approvals like the Grayscale Digital Large Cap Fund LLC. The company's lawyers indicated that they may file a petition to lift the stay on the fund's launch. "Grayscale, the Exchange, and the Fund’s current investors are suffering harm because of the delay in the public launch of the Fund. Therefore, Grayscale and the Exchange are considering whether to file a petition requesting the Commission lift the stay imposed by Rule 431(e), allowing the Fund to launch quickly while the Commission reviews the action taken by delegated authority," the lawyers expressed. They further requested that the Office of the Secretary promptly notify the Exchange that, despite the July 1, 2025 stay order from the Division of Trading and Markets, the Proposal was deemed approved by the Commission on July 2, 2025, in accordance with Section 19(b)(2)(D) of the Exchange Act. An SEC spokesperson declined to comment on this matter. Last week, the SEC approved Grayscale's proposal to convert the fund into an ETF on an accelerated basis. The fund primarily invests in Bitcoin (almost 80%) and Ethereum (about 11%), with smaller allocations to Solana, Cardano, and XRP, according to its website. However, the next day, the SEC put a hold on this approval. In correspondence to the New York Stock Exchange, SEC Deputy Secretary J. Matthew DeLesDernier stated that although the Division of Trading and Markets had granted the approval, the commission intended to review it further. Currently, the SEC is reviewing several crypto ETF proposals, including those related to XRP, PENGU, and DOGE, in a more favorable regulatory climate for cryptocurrencies since the beginning of the year. Some observers suggest that approving the Grayscale Digital Large Cap ETF could pave the way for other pending proposals. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a primary investor in The Block. Foresight Ventures also invests in various companies within the crypto space. Crypto exchange Bitget serves as an anchor LP for Foresight Ventures. The Block operates independently to deliver objective, timely information about the crypto industry.