Grayscale has expressed surprise over the SEC's decision to pause the trading of its Digital Large Cap Fund, which includes cryptocurrencies such as Solana and XRP. This unexpected move reflects the rapidly changing regulatory environment for digital asset products. Grayscale emphasized its commitment to pursuing the listing of the ETF and is working with stakeholders to fulfill regulatory requirements. The SEC had previously fast-tracked the application for the ETF but now has decided to halt its approval pending further evaluation. Grayscale’s fund is significantly invested in Bitcoin, Ethereum, and other leading digital assets, constituting over 80% of its holdings. The SEC's cautious approach indicates a careful stance towards altcoin ETFs, as it continues to reassess applications to foster investor protection in the rapidly evolving crypto landscape.

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