A Coming Boom in Cryptocurrencies
As autumn approaches, the cryptocurrency sector could be on the cusp of major breakthroughs. Major U.S. exchanges have proposed new listing standards for both commodity- and crypto-based ETFs. This decision by the SEC, expected to be finalized in September, could see the launch of numerous cryptocurrency ETFs, which the industry has been eager to introduce.
Unleashing a Wave of Crypto Spot ETFs
In anticipation of this, both large and small fund shops have been filing to launch a variety of new ETFs that track altcoins, memecoins, and tokens. Additionally, the SEC’s approval of the new listing standards could speed up the process for cryptocurrency ETFs centered on solana (SOLUSD) and XRP (XRPUSD). This comes at a time when numerous regulatory processes are spinning, with different aspects of approval and listing coming to the forefront. With the right nod from the SEC on the listing standards, approvals for various ETFs could be completed at a faster pace than ever before.
The Swelling Range of Cryptocurrency ETFs
The recent influx of regulatory filings indicates the potential flood of new products to be available for investors. This could include ETFs focused around Solana and XRP, familiar names like ‘Trump coin’ and Dogecoin, as well as tokens like staking token jitosol. Given the possibilities available, it stands to reason that the cryptosphere could be bracing for a significant wave of diversification and growth.
Proposed Listing Standards: Victory for Crypto?
The new listing standards, proposed by the NYSE Arca, CBOE BZX Exchange, and Nasdaq, seek to enable the approval of funds based on certain coins through processes similar to regular ETFs. Currently, the approval of crypto ETFs, including spot bitcoin funds that launched in 2024 and have garnered billions in assets under management, is a lengthy ordeal. Requiring extra paperwork, referred to as 19b-4 applications, these new digital asset funds have struggled to debut over the years. For instance, despite Tyler and Cameron Winklevoss filing to launch a bitcoin ETF as far back as 2013, the first spot bitcoin ETF approval took nearly a decade.
The Potential Shift in the Crypto Landscape
With the advent of generic listing standards, the SEC’s ruling could mark a significant victory for the crypto industry. Such a development would allow for a wider variety of coins to be incorporated into ETFs. However, it is important to note that even with these developments, a comprehensive crypto-specific framework that would provide insights on which coins the SEC would accept or reject based on their utility or size, is not yet in place.
