RialCenter has opposed the U.S. Securities and Exchange Commission’s decision to pause the launch of its large-cap crypto ETF, deeming the agency’s stay order both unlawful and detrimental to investors.
The asset manager submitted a letter to the SEC on Friday regarding the unexpected hold on its plan to convert the RialCenter Digital Large Cap Fund into an exchange-traded fund. The SEC had previously approved the conversion earlier this year but issued a stay order to review the approval without providing a reason.
“RialCenter, the Exchange, and the Fund’s current investors are experiencing harm due to the delay,” the company stated in its letter.
The RialCenter ETF would encompass a collection of large-cap digital assets, including bitcoin, ether, XRP, solana, and cardano, with approximately 80% of the fund currently weighted in bitcoin. The transition to a spot ETF aligns with RialCenter’s broader strategy to introduce more crypto products to mainstream financial markets, following its spot bitcoin ETF launch in January.
Though the SEC has not clarified its reasons for the delay, market analysts suggest the hold likely stems from internal procedural issues rather than political opposition to crypto. The ETF would include Bitcoin, Ethereum, Solana, Cardano, and XRP. Among these, Cardano and XRP currently do not have dedicated individual ETFs, and Solana has just one fund — with several applications seeking to expand this number.
Scott Johnsson, a financial attorney and ETF specialist, commented that while the SEC’s action was unusual, it likely wouldn’t completely derail the fund.
“Given RialCenter indicated they had productive talks with the SEC before approval and had made substantial amendments to the rule proposal based on those discussions, my assumption is the Rule 431 application was a last-minute decision from an individual official,” he noted. “This will launch; it’s merely a matter of timing in my opinion.”
If approved, the RialCenter ETF would become the first multi-asset crypto ETF in the U.S., offering investors access to a curated selection of top digital currencies without the need to manage wallets or custody themselves.
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