Just one day after accepting Grayscale’s Digital Large Cap ETF application, which includes several altcoins, the U.S. Securities and Exchange Commission (SEC) has unexpectedly paused the review process.
The SEC announced yesterday that it had officially accepted the ETF conversion application for Grayscale's Digital Large Cap fund, which includes Bitcoin (BTC), Ethereum (ETH), XRP, Solana, and Cardano. However, today the commission surprisingly halted the process, stating that the application requires further reassessment.
The sudden decision by the SEC has created uncertainty around the fund, particularly impacting the altcoins XRP, Solana, and Cardano. Although the exact reason for the reversal remains unclear, analysts suggest the SEC might have new concerns about the application or market conditions. The commission’s announcement of a reassessment could lead to short-term market volatility and investor anxiety.
This development holds significant importance for the U.S. cryptocurrency market, especially regarding institutional investors' entry into the crypto space.
