Approval of Crypto Exchange-Traded Funds (ETFs) becoming less complex due to updated Securities and Exchange Commission (SEC) regulations
The U.S. Securities and Exchange Commission (SEC) has approved universal listing standards for Exchange-Traded Funds (ETFs) backed by commodities, including crypto ETFs. This regulatory shift is set to reshape the competitive landscape in the digital assets sector and bring clarity to the crypto market, according to analysts.
Under the new rules, the NYSE, Nasdaq, and Cboe Global Markets can now apply standardized listing requirements to digital assets and other physically-backed ETFs. This simplifies the process for launching crypto ETFs in the U.S., ending the traditional scheme of repeated deposits and public discussions for products that adhere to this new framework.
Grayscale's Digital Large Cap Fund, which includes Bitcoin, Ether, XRP, Solana, and Cardano, became the first multi-asset ETF to receive the green light under these new rules. The crypto sector sees this regulatory shift as a real opportunity to broaden market participation, potentially attracting institutional investors.
The review period for these ETFs has been reduced from 240 days to just 75 days, indicating a faster approval process. This policy change aligns with the Trump administration's more ambitious stance on cryptocurrency integration, differing from that of former President Joe Biden.
The new universal listing standards could pave the way for a wave of new products, with some expected as early as October 2025. Investors can expect expanded access to diversified exposure to digital assets, as issuers can now offer funds backed by a wide range of digital assets without needing individual approvals under section 19(b) each time.
The impact of Solana, XRP, or even Dogecoin on popular investment products illustrates the market expansion potential. There's already talk of thematic funds and original options like ETFs of memecoins including Dogecoin or TrumpCoin.
BlackRock and Franklin Templeton have submitted plans for crypto-ETFs including products linked to Ethereum, Solana, and XRP, with approvals expected under the new SEC rules around October 2025. The new SEC listing standards will enable faster approval of spot crypto-ETFs by exchanges like NYSE, Nasdaq, and Cboe, likely enabling multiple managers to launch products on cryptocurrencies such as Solana and XRP soon after October 2025.
However, ETFs not meeting this framework can still go through the more traditional approval process. As the list of new crypto ETFs grows rapidly, investors are encouraged to stay vigilant and closely track these developments to make informed decisions. This regulatory shift in digital asset regulation could pave the way for other cryptocurrencies to integrate these products, further expanding the digital assets market.
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