US SEC Guidance Set to Spark Wave of Crypto ETP Launches in 2026
A significant development in the cryptocurrency space is expected to unfold in 2026, with over 100 crypto exchange-traded products (ETPs) potentially hitting the market in quick succession. This surge is attributed to the US Securities and Exchange Commission’s (SEC) recent decision to dramatically reduce processing times for new funds. According to Ryan Rasmussen, a researcher at Bitwise, this move will enable the launch of a wide range of crypto-related ETPs, including spot cryptocurrencies, indices, stocks, and smart beta products.
Rasmussen’s prediction is based on the SEC’s release of general listing standards in October, which eliminated the need for individual 19(b) approvals for qualifying crypto ETPs. This change has essentially created a playbook for ETP issuers, informing them that an ETP can be listed if an asset meets certain criteria, thereby reducing the waiting period from 240 days to a significantly shorter timeframe. As Rasmussen noted in an interview with the Bankless podcast, “We’re going to move forward at a ridiculous rate from here.”
Implications for the Crypto Market
The launch of additional crypto ETPs that track altcoins is viewed by many market participants as a bullish sign for the market. Bitfinex analysts have stated that altcoins are unlikely to see a broad, outsized rally until ETFs that provide exposure beyond the largest cryptocurrencies are approved. With the expected influx of new ETPs, investors will have a larger menu to choose from, allowing them to allocate their shares more effectively. Rasmussen likened this to a restaurant’s menu, stating that a larger selection can create a more exciting experience for investors.
According to Fineqia International, the number of crypto ETPs on the market has recently increased to over 300. The general guidance on listing standards is expected to lead to many more crypto ETP launches in the near future. Bloomberg ETF analyst James Seyffart has described the policy change as a positive step toward a “wave of spot crypto ETP launches.” Seoyoung Kim, an associate professor of finance at Santa Clara University’s Leavey School of Business, has also noted that the rule changes could bring significant benefits to other crypto products, particularly those that have not yet been individually vetted.
Expert Insights and Analysis
Crypto analysts agree that the SEC’s new rules have a positive impact on the market. While it may not have a major impact on already “legitimate” categories like Bitcoin (BTC) and Ether (ETH), it could bring significant benefits to other crypto products. As Kim stated, “For a digital asset futures or spot ETF that has not yet been individually vetted, these rule changes could reduce the time to approval from years to months.” The potential ETF must still comply with pre-existing standards for ETF formation, listing, and trading.
Matt Hougan (bottom left) and Ryan Rasmussen (bottom right) from Bitwise were interviewed on the Bankless podcast. Source: Bankless
For more information on the US SEC’s guidance and its impact on the crypto market, visit Cointelegraph.
