SEC Approves Generic Listing Standards for Spot Crypto ETFs
The Securities and Exchange Commission (SEC) has taken a significant step towards streamlining the process for listing Spot Crypto Exchange-Traded Funds (ETFs) by approving new generic listing standards. This move is expected to eliminate the need for lengthy case-by-case approvals, which could take up to 240 days, and align crypto ETFs with traditional commodity funds.
Key Takeaways
The new rules, which were approved on September 17, allow an ETF to be listed without SEC registration if its underlying asset meets certain criteria, such as having active CFTC-regulated futures contracts for at least six months or constituting at least 40% of an existing ETF. This brings crypto ETFs in line with traditional commodity funds, as per Rule 6c-11.
Implications for the Crypto Industry
The SEC’s decision is seen as a major milestone for the crypto industry, with analysts predicting a wave of new ETF launches that could extend beyond Bitcoin (BTC) and Ethereum (ETH) to other assets such as Solana, XRP, and even non-tokenized assets. The move is expected to promote innovation and maximize investor choice while ensuring that the US remains a leading market for digital assets.
First Products Already Approved
In addition to the new standards, the SEC has also approved the listing of the Grayscale Digital Large Cap Fund, which tracks the Coindesk 5 index, and the trade of options associated with the CBOE Bitcoin US ETF index and its mini version. Industry experts, including James Seyffart of Bloomberg, have welcomed the decision, describing it as a “rational, rule-based approach” that brings access to investor protection.
Expert Insights
SEC Chairman Paul Atkins stated that the move is designed to “maximize investor choice and promote innovation” while ensuring that the US remains a leading market for digital assets. Jamie Selway, director of the trade and market department, described the framework as a “rational, rule-based approach” that brings access to investor protection.
For more information on this development, visit https://crypto.news/sec-nods-generic-listing-standards-crypto-etfs-2025/
