SEC Delays Grayscale’s New Crypto ETF Despite Earlier Approval
The post SEC Delays Grayscale’s New Crypto ETF Despite Earlier Approval appeared on BitcoinEthereumNews.com.
Despite approving Grayscale’s new five-asset basket ETF yesterday, the SEC issued a stay order on it. This prevents the product from going to market for an indefinite period. Prominent ETF analysts have issued a few competing theories to explain this delay, but these only constitute educated guesses. Until the SEC clarifies its position, we’re all in the dark. Grayscale’s New ETF Faces Setbacks Grayscale has been a crypto ETF pioneer since it spearheaded the approval of a Bitcoin ETF, and the firm has filed for several other new products since. Yesterday, the SEC caused a huge stir when it approved a new basket ETF, consisting of five leading altcoins. However, the Commission has apparently reversed this stance, inviting confusion: “The Commission will review the delegated action. In accordance with Rule 431(e), the July 1, 2025 order is stayed until the Commission orders otherwise. The Office of the Secretary will notify you of any pertinent action taken by the Commission,” the SEC claimed in a letter addressed to the NYSE. To be clear, this isn’t a full rejection for Grayscale’s ETF. Instead, the company is merely delaying its official launch for an indefinite period. It’s a frustrating situation, but this doesn’t signify a greater anti-crypto stance from the SEC. Naturally, the crypto community has been speculating why the Commission changed its stance on Grayscale’s new ETF. The SEC has taken a firmly pro-crypto stance in recent months, but it’s given ETF proposals one delay after another. Nonetheless, veteran ETF analysts have presented a few theories explaining the SEC’s thought process. Bloomberg analyst James Seyffart hypothesized that the SEC doesn’t want to launch any altcoin ETFs without establishing a new legal framework. There are several outstanding questions regarding SEC and CFTC jurisdiction over altcoins within Grayscale’s ETF. The Commission may want to…
Filed under: News - @ July 3, 2025 12:27 am