The SEC Reverses Course And Suspends The Grayscale ETF Holding Solana And XRP

The crypto industry is stunned. The SEC has just suspended trading on Grayscale’s multi-asset ETF containing Solana and XRP, just days after its approval. What is behind this sudden reversal?

Solana and XRP targeted? The SEC blocks Grayscale’s ETF without warning

On Thursday, the SEC surprised markets by suspending trading of Grayscale’s multi-asset GDLC ETF, which notably includes Solana and XRP. This decision, described as “unexpected” by Grayscale, comes amid an increasingly unstable US regulatory environment.

The Digital Large Cap (GDLC) fund, recently approved to be listed on NYSE Arca, is composed mainly of Bitcoin and Ethereum, but also includes a small portion of altcoins like Solana (2.8%) and XRP (4.8%). However, it is precisely this exposure to altcoins that seems to be the problem for the regulator today.

According to initial information, the SEC has not rejected the fund but triggered a “review” process (Rule 431) after its initial delegated approval.

This administrative suspension aims to take a closer look at the composition of the fund, notably the presence of cryptos that do not yet have approved standalone ETFs, such as XRP or Solana.

Analysts like James Seyffart (Bloomberg) believe this pause is not definitive, but allows the SEC to finalize a more robust regulatory framework for crypto ETFs.

The goal would be to establish clearer standards in market surveillance, digital asset custody, and investor protection before expanding approval to ETFs including altcoins.

A cautious strategy or a strategic move by the SEC?

For some analysts, the SEC is adopting an extremely cautious stance toward altcoins. The regulator seems to want to avoid any risk related to these controversial assets.

But according to other observers, this temporary suspension could also resemble a more strategic maneuver: by approving the fund while blocking its launch, the SEC would give itself time to observe market reactions while demonstrating regulatory vigilance.

This forced suspension raises a fundamental question: are altcoins like Solana and XRP mature enough to be fully integrated into ETFs intended for the general public? Or must they still go through a transitional phase, governed by mixed mechanisms like the GDLC?

Ironically, this suspension decision might well accelerate the long-awaited clarification process. Because as long as the SEC has not clarified, once and for all, the status of altcoins, access to ETFs will remain a slippery slope—subject to regulatory about-faces.

This paradoxical suspension of Grayscale’s ETF by the SEC reveals the deep contradictions of the American crypto regulatory landscape. By approving a product before immediately blocking its launch, the regulator sends contradictory signals that destabilize the entire industry. This decision could well determine the future of the 70 crypto ETFs currently awaiting approval.