According to @StockMKTNewz, the U.S. Securities and Exchange Commission (SEC) has initiated a review of its staff's approval for Grayscale's Digital Large Cap Fund (GDLC) to be converted into an Exchange-Traded Fund (ETF). This action places a stay on the conversion, creating regulatory uncertainty for the fund's holdings, which include Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA), as stated in a letter dated July 1. This specific regulatory hurdle contrasts with broader legislative efforts in Congress, such as the FIT21, STABLE, and CLARITY Acts, which aim to establish a clear federal framework for digital assets. The outcome of the SEC's review could directly impact the market sentiment and trading of the assets within the $755 million GDLC fund.

According to @rovercrc, the U.S. Securities and Exchange Commission (SEC) has officially approved the conversion of Grayscale’s Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). This new ETF provides investors with exposure to a basket of major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP (XRP), and Cardano (ADA), as detailed in the filing. The fund, which holds nearly $755 million in assets under management, is heavily weighted towards Bitcoin, which constitutes about 80% of its holdings. The source notes that this approval allows investors to access the largest digital assets through a single, regulated product. Following this decision, the market will be watching for the SEC's verdict on the conversion of Bitwise's 10 Crypto Index Fund (BITW) into an ETF. Despite the positive regulatory news, market data shows the fund's key altcoin components have experienced recent downturns, with SOLUSDT down 7.3%, ADAUSDT down 7.5%, and XRPUSDT down 5.4% in the last 24 hours.