Key Takeaways
What step did the SEC recently take regarding crypto ETFs?
The SEC approved rule changes allowing NYSE Arca, Cboe BZX, and Nasdaq to adopt generic listing standards for spot crypto ETFs, streamlining the approval process.
Why is this considered a major milestone?
It ends over a decade of case-by-case reviews since the first Bitcoin ETF filing in 2013, opening the door for faster approvals.
Despite repeated delays in ETF approvals, institutional interest shows no signs of slowing.
SEC fast-tracks crypto ETFs
Seeing this, on the 17th of September, the U.S. Securities and Exchange Commission (SEC) took a step forward by greenlighting proposed rule changes from three national securities exchanges.
The move clears the way for these platforms to adopt generic listing standards for cryptocurrency and other spot commodity exchange-traded products (ETPs), raising hopes for a smoother approval process ahead.
The SEC’s ruling under Rule 6c-11 marks a major shift in how spot crypto ETFs are reviewed.
It granted exchanges such as NYSE Arca, Cboe BZX, and Nasdaq the ability to adopt generic listing standards for new digital asset products.
This overhaul replaces the case-by-case approach that required separate filings from both exchanges and asset managers, a process that often dragged on for months.
Under the new system, the maximum review period is reduced to 75 days, down from a previous limit of 240 days.
What could be behind this shift in the SEC’s sentiment?
Industry players, including VanEck, 21Shares, and Canary Capital, seem to have played a certain role in shaping this outcome by pressing the SEC to reinstate a “first-to-file” framework for applications.
Additionally, credit also goes to the Trump administration for taking a more proactive stance on crypto ETFs compared to the slower, more cautious approach of the Biden era.
Remarking on the same, Teddy Fusaro, president of Bitwise Asset Management, said,
“This is a watershed moment in America’s regulatory approach to digital assets, overturning more than a decade of precedent since the first bitcoin ETF filing in 2013.”
Paul Atkins weighs in
SEC Chairman Paul Atkins emphasized that the agency’s approval of generic listing standards is aimed at strengthening the U.S. capital markets’ global standing in digital asset innovation.
He noted,
“This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets.”
Under the revised framework, eligibility requires that the underlying asset either trade on a market connected to the Intermarket Surveillance Group.
Also, it needs monitoring access or has to be linked to a Futures contract with at least six months of official trading history and a surveillance-sharing agreement.
Market watchers are expecting Solana and XRP ETFs to be among the first launched under the new rules, following more than a year of filings.
As reported by CNBC, Steve McClurg, CEO of Canary Capital, added,
“The gates are open but there’s still a lot of work to be done.”
Did altcoin ride the wave?
This development coincides with noticeable market swings among major altcoins.
According to CoinMarketCap, XRP was trading at $3.07 after a 1.29% gain in the past 24 hours, while SOL recorded a 3.15% increase.
DOGE climbed 3.5% to $0.2788, whereas LTC bucked the trend, slipping 0.06% to $115.28 over the same period.
The timing of the SEC’s decision also coincides with renewed competition among issuers vying to bring novel crypto products to market.
Bitwise, for instance, has recently filed for a “Stablecoin & Tokenization ETF.”
It is designed to track an index that includes stablecoin issuers, blockchain infrastructure firms, payment processors, exchanges, retailers, and even regulated Bitcoin [BTC] and Ethereum [ETH] ETPs.
