The conversion by Grayscale of its digital fund of large capitalization (GDLC) into funds negotiated on the stock market (ETF) was frozen by a stay order, despite receive approval of the Securities and Exchange Commission (SEC) on July 1.
Bloomberg ETF analyst, James Seyffart, said in an article on social networks on July 2 that the stay blocks the conversion “For the moment” And that the dry did not give any calendar for withdrawal.
Two theories
Seyffart shared two work theories for the temporary block provided with approval. The first is that the staff of another division can still check the structure of GDLC, or that the dry may prefer to maintain each cryptography list until it finishes a wider Set of rules for token ETF.
Meanwhile, Bloomberg Senior ETF analyst Eric Balchunas has evaluated that dry could wait for the ETF of the first point The follow-up of Solana, Cardano and XRP arrives on the market before allowing Grayscale to exchange its multi-active fund.
Approval has changed the NYSE Arca 8.500-E rule, allowing the trust units to negotiate on the scholarship once the operational details have been erased.
GDLC holds Bitcoin, Ethereum, Solana, XRP and Cardano. Graycale reports about $ 775 million in management as management for the product.
When the stay is lifted, the fund will pass to a format of creation and redemption in kind, replacing the structure at current closed ends.
Standard
Recent reports suggest that dry and US exchanges are working on writing a generic rating standard for tokens.
Under the proposal, an issuer would only file a S-1 form, would wait for the usual 75 days and will launch if the recording becomes effective. The frame would allow transmitters to bypass the current rule 19B-4 modification that each product now needs.
Seyffart described the prospect as “very good news” because a single standard would shorten deadlines and provide clear thresholds for market capitalization, negotiation volume and liquidity.
Other crypto basket funds, including deposits submitted by Bitwise, Hashdex and Franklin Templeton, await the approval of the dry.
Based on one of Seyffart’s theories, the regulator could wait until GDLC’s complete authorization so that he can approve the other ETF according to the same standards.
In particular, the deadline for decision on the Bitwise deposit expires on July 31, which could be a key date to monitor and expect from the rumor frame.
