Key Takeaways
- The SEC is reportedly exploring a streamlined path for token-based ETFs that skips the usual 19b-4 process.
- A standardized listing framework could ease the backlog of crypto ETF filings and accelerate approval timelines.
- Meanwhile, Grayscale has received approval to convert its GDLC fund into a spot ETF.
The U.S. Securities and Exchange Commission is considering a major change that could make it easier for crypto exchange-traded fund (ETF) issuers to bring their products to market.
According to multiple reports, the SEC is in early talks with exchanges to develop a universal listing standard for token-based ETFs. The move would allow eligible applications to bypass the often slow and complex 19b-4 rule change process.
SEC Weighs Faster Path for Crypto ETF Listings
If adopted, issuers could simply file an S-1 registration statement, wait the standard 75-day period, and list the product, assuming the token meets specific benchmarks like liquidity, trading volume, and market capitalization.
FOX Business journalist Eleanor Terrett, who first reported the development , noted that the initiative is still in the early stages, but it reflects a growing recognition that the current approval process is slowing innovation.
With more than a dozen ETF filings waiting in line and market interest ramping up, a simplified approach could reduce red tape and give the SEC breathing room as it navigates the evolving crypto landscape.
Grayscale Conversion Approved as Altcoin ETF Momentum Builds
Signs of movement are already emerging. On Tuesday, the SEC approved Grayscale’s request to convert its Digital Large Cap Fund (GDLC) into a spot ETF.
The GDLC ETF will trade on NYSE Arca and hold a basket of leading cryptocurrencies, Bitcoin (80%), Ethereum (11%), XRP (around 5–6%), Solana (2–3%), and Cardano (1%).
Elsewhere, altcoin ETF optimism is climbing.
The SEC is currently reviewing nine Solana ETF filings from major issuers like VanEck, 21Shares, Bitwise, and Canary Capital.
Some of those proposals even include staking mechanisms to generate yield.
In a signal that the approval process is gaining traction, the SEC recently asked issuers to submit amended S-1s within a week.
Analysts now believe the first wave of approvals could land as early as July.
Bloomberg ETF analysts James Seyffart and Eric Balchunas have increased their approval odds for Solana and XRP ETFs to 90–95% by year-end.
Sui and Tron are considered longer shots, with estimated approval odds at 60% and 50%, respectively.
