SEC Endorses Universal Listing Criteria for Crypto Exchange-Traded Products, Paving the Way for Their Market Introduction
The Securities and Exchange Commission (SEC) has made a significant move in the cryptocurrency market by approving generic listing standards for spot crypto Exchange-Traded Products (ETPs). This decision is expected to maximize investor choice and foster innovation, as it streamlines the listing process and reduces barriers to access digital asset products.
The approval comes at a time when the cryptocurrency market is eagerly anticipating the launch of several altcoin ETFs. Two of these, the REX-Osprey XRP ETF (XRPR) and the REX-Osprey Dogecoin ETF (DOJE), are scheduled to start trading on Thursday. This week is significant for altcoin ETFs, with these launches marking a milestone in the US capital markets.
The SEC's decision is not limited to a few select companies. Companies like Grayscale, with its Digital Large Cap Fund (exposure to Bitcoin, Ether, XRP, Solana, and Cardano), are among the first approved under these new standards. Dozens of other firms are expected to launch spot crypto ETFs in the coming weeks and months on exchanges such as NYSE, Nasdaq, and Cboe Global Markets.
The new regulations eliminate the lengthy, case-by-case approval process that previously required months or years. Now, if an asset has a futures contract trading on a regulated exchange such as Coinbase for six months, it will be allowed to become a spot ETF. As of the report, there are 12 crypto assets trading as futures on Coinbase, which now have an easier path to becoming spot ETFs.
The SEC Chairman, Paul Atkins, stated that the approval helps to ensure that the U.S. capital markets remain the best place for digital asset innovation. Nova Dius President, Nate Geraci, also applauded the SEC's decision, highlighting the potential it holds for the future of the cryptocurrency market.
However, not all ETFs have received the green light. The SEC did not approve the Truth Social Bitcoin ETF, delaying its decision. Despite this setback, the overall momentum in the cryptocurrency ETF market remains positive, with analysts expecting a series of similar altcoin ETF launches to follow.
The approval of afternoon-settled Bitcoin ETF options by the SEC further underscores the regulatory body's commitment to fostering innovation in the digital asset space. With these new rules in place, the US cryptocurrency market is poised for a wave of spot crypto ETP launches in the coming weeks and months.
