Key Takeaways
SEC’s new ‘general listing standard’ could help fast-track crypto ETF approval by September or October. But a policy analyst noted that the spot SOL ETF could happen before XRP.
The U.S. Securities and Exchange Commission (SEC) could be close to fast-tracking altcoin ETF approvals after unveiling new listing standards.
On the 30th of July, the Cboe BZX exchange filed for rule changes to streamline the crypto ETF approval process.
According to Greg Xethalis, general counsel at VC MultiCoin Capital, the new “generic listing standards” would tie approval to the Futures market.
Any asset with over six months of Futures market tracking on Coinbase could be listed.
Source: Greg/X
He added that the submission also sought an ETF staking provision, stating other public TradFi exchanges like Nasdaq and NYSE will follow suit and make similar filings.
A big deal for altcoin crypto ETFs?
Bloomberg senior ETF analysts Eric Balchunas and James Seyffart acknowledged the update. In fact, Seyffart hailed it as a “pretty big deal,” saying,
“This is the framework and generic listing standards we’ve been looking for with regard to digital assets in an ETF wrapper. This is a pretty big deal.”
Per Balchunas, the Futures contracts tracking will make approval likely for Litecoin [LTC], Dogecoin [DOGE], Solana [SOL], Ripple [XRP], and others by September or October.
“It’s about a dozen of the usual suspects, the same ones we had at 85% or above in our odds. The question still, though, is timing. Likely Sept/Oct for all.”
For perspective, spot Bitcoin [BTC] and Ethereum [ETH] ETFs were approved after launching CME Futures.
But Coinbase derivatives have more altcoins than CME Futures, hence it will also be considered for spot ETF approvals, added Balchunas.
Since Futures trading is under the CFTC (Commodity Futures Trading Commission), the agency will have a bigger say on what will be approved by the SEC, noted Seyffart.
That said, from a Futures trading perspective, SOL began trading on CME Futures on the 17th of March, while XRP followed later on the 19th of May this year.
If the new General Listing Standard (GLS) rules were to be applied as they are, spot SOL ETF approval could happen earlier (September 17) than XRP, added Xethalis.
“The timeline would be slightly later for XRP Futures, which launched after SOL Futures. Nevertheless, SOL and XRP ETPs appear highly likely to launch by the beginning of Q4.”
Source: X
The SEC has delayed several altcoin and crypto index ETF applications, including a recent filing from President Donald Trump-linked Truth Social.
ETF experts linked the delay to this listing standards. It remains to be seen how fast the agency will act under the new framework.
