Yesterday, the SEC issued a stay order despite approving Grayscale’s new five-asset basket ETF. This prevents the product from going to the market indefinitely.
Prominent ETF analysts have published several competing theories to explain this delay, but these constitute only educated speculations. We are all in the darkness until the SEC clearly defines its position.
Face Grayscale’s new ETF
Grayscale has been a pioneer of Crypto ETF since leading approval for the Bitcoin ETF, and since then the company has filed for several other new products.
Yesterday, the SEC caused a great stir when it approved a new basket ETF consisting of five major altcoins. However, the committee clearly reversed this stance, causing confusion.
“The Commission reviews the commissioned cases. In accordance with Rule 431(e), the order of July 1, 2025 will remain until the order of the Commission. The Commissioner’s Office will notify you of any relevant cases filed by the Commission, requested in a letter addressed to the NYSE.
To be clear, this is not a complete rejection for Grayscale’s ETF. Instead, the company will simply delay official launches indefinitely. It’s an annoying situation, but this does not imply a greater anti-cryptic attitude from the SEC.
Naturally, the Crypto community is speculating why the committee changed its stance on Grayscale’s new ETF. The SEC has been firmly in the procrypt position over the past few months, but ETF proposals have been delayed one after another.
Nevertheless, the veteran ETF analysts have presented several theories explaining the thought process of the SEC.
Bloomberg analyst James Seyfert assumed that the SEC did not want to launch Altcoin ETF without establishing a new legal framework.
There are several notable questions about SEC and CFTC jurisdiction regarding Altcoins within Grayscale’s ETFs. The committee may want to resolve these issues before pushing for a full launch.
Additionally, he said today that the final deadline for Grayscale’s ETF application. The SEC may have adopted this unorthodox strategy as a way to push the envelope a little more.
In this view, the committee did not want to reject Grayscale and chose to issue false approvals to purchase the time. Seyffart also thought it could be a specific issue with Grayscale.
Other analysts repeated this initial sentiment. The SEC is currently creating new standards to streamline ETF approvals, but they are not ready yet. We recommend that you throw out all the relevant details before bringing ETFs to the market on Grayscale.
Unfortunately, this is all just speculation. It is not possible to clearly explain this move until the committee issues further guidance. Hopefully, the SEC will soon clarify its position and hopefully bring Grayscale’s new ETF to the market.
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