Key takeout
- In July, major US exchanges suggested a general listing standard for commodity and crypto-based ETFs, which the SEC could approve next month.
- This move could speed up the approval process for a variety of new products, as many companies have recently submitted plans to launch ETFs that track various altcoins, memecoins, and tokens.
For those who basked in the warmth of the “Crypto Summer,” there might not be much to fret about as we approach fall.
U.S. securities regulators are likely to make swift decisions regarding the rollout of the new Crypto Spot ETF. In late September, the Securities and Exchange Commission acknowledged new listing standards for crypto and commodity-based exchange products, which opens the door for numerous new offerings that the industry is eager to present.
Currently, there are several regulatory changes taking place, some of which facilitate the approval processes for others. For instance, the recent nod to listing criteria could hasten approvals for exchange-traded funds focused on cryptocurrencies like Solana (Sol) and XRP. This continuum of regulatory activity is already in motion.
Recent filings indicate that investors may soon have access to a variety of options, including unique offerings like “Trump Coins,” dogeusd, and other less mainstream currencies tied to Solana and XRP.
The new rules will be considered a victory for crypto
In late July, the CBOE BZX Exchange, NYSE ARCA, and NASDAQ introduced a proposed general listing standard for merchandise and crypto-related exchange products.
This proposal from the three exchanges allows funds associated with specific cryptocurrencies to receive approval similar to how the 1940 Act regulates traditional ETFs. Currently, crypto ETFs, including newly launched spot Bitcoin funds – which have gained billions in assets since early 2024 – are navigating a lengthy approval process that requires complex additional documentation, known as the 19b-4 application, whenever they seek SEC approval to launch a Digital Assets ETF. For years, this procedure has delayed the introduction of new digital asset funds. The Winklevoss twins, Tyler and Cameron, are notable for their 2013 attempt to launch a Bitcoin ETF, but subsequent approvals have been sporadic.
The general listing criteria mark a win for the crypto sector, as they enable ETF providers to incorporate more coins into widely sought investment vehicles. However, the rules fall short of creating a crypto-specific framework that clarifies which coins the SEC will permit or prohibit based on their utility or market size.
