SEC Issues New Guidelines for Crypto ETF Issuers, Approves Grayscale’s Fund Conversion

On July 1, 2025, the U.S. Securities and Exchange Commission (SEC) issued new guidelines for crypto ETF issuers and approved Grayscale’s conversion of its Digital Large Cap Fund into a spot ETF in Washington.

These developments could streamline regulatory processes for crypto ETFs, significantly impacting BTC and ETH markets by enhancing institutional access.

Milestone for Crypto ETFs as SEC Speeds Up Filings

The SEC has provided comprehensive guidelines for cryptocurrency ETF issuers. These directives cover everything from calculating net asset value to selecting service providers and detailing custody practices. The SEC’s approval of Grayscale converting its Digital Large Cap Fund into a spot ETF signals a major regulatory acceptance. Issuers must now make targeted disclosures based on their specific structures, including asset selection and potential conflicts of interest.

Changes include a 75-day S-1 filing process, possibly expediting listing times for spot and derivative-based ETFs. This means more crypto ETP products may enter the market sooner. This shift could boost institutional participation in cryptos like BTC and ETH, which are central to these ETF products.

Grayscale’s fund conversion represents a milestone in the evolving ETF landscape. While no official statements from SEC Chair Gary Gensler or Grayscale’s CEO Michael Sonnenshein have been made, the industry anticipates positive impacts on crypto market liquidity and investor access.

Historical Context, Price Data, and Expert Insights

Did you know? The approval of Grayscale’s spot ETF marks a pivotal moment in crypto history, echoing the significant inflows seen during the first Bitcoin ETFs approval in January 2024, which led to increased custodial withdrawals.

According to CoinMarketCap, Bitcoin (BTC) is currently priced at $105,479.58 with a market cap of $2.10 trillion, dominating 64.57% of the market. The recent 24-hour trading volume reached $43.19 billion, showcasing a 4.12% shift. Over the past 90 days, Bitcoin saw a 27.06% increase.

Experts from the Coincu research team project regulatory clarity will encourage more institutional investments in crypto ETFs, particularly for large-cap assets like BTC and ETH. Such trends underscore a potential rise in demand for crypto-based financial products, reinforcing digital asset market stability.