SEC’s generic listing standards may speed crypto ETF approvals, but not every token is likely to rally after the change.
The U.S. Securities and Exchange Commission is considering generic listing standards for crypto exchange-traded products (ETPs).
Bitwise CIO Matt Hougan believes this change could “blow the market wide open” and trigger what he calls “ETPalooza.”
Currently, every new crypto ETF requires a one-off SEC filing. The process can stretch up to 240 days, with no certainty of approval. That’s why it took more than a decade for the first spot Bitcoin ETF to gain approval last year.
Why Generic Standards Matter for Crypto ETFs
Generic standards would simplify the process of approving a new ETF. Issuers can simply list products as long as they meet predefined rules, and get faster launches with decisions in as little as 75 days.
Hougan, however, says that these new rules could turn ETF approvals from an unpredictable process into a predictable pipeline.
What this means is that assets like Solana, XRP, Chainlink, Cardano, Avalanche, Dogecoin, Shiba Inu, Polkadot, Hedera, Litecoin and Bitcoin Cash could all qualify for ETFs as soon as possible.
This has happened before, when in 2019, the SEC introduced the “ETF Rule,” which replaced case-by-case approvals with generic standards.
The number of ETF launches in the U.S. tripled in a year, from 117 to 370. Hougan expects the same outcome in crypto, and says that dozens of single-asset and index-based ETPs could enter the market.
More ETFs Don’t Guarantee Investor Demand
Despite the excitement, Hougan continues to warn that the launch of new ETFs won’t automatically bring large inflows.
Volume in $SSK now at $20m, which is really strong, top 1% for a new launch. For context, $SOLZ did $1m on Day One, and that’s pretty good. Also, the $25m in seed assets makes $SSK already bigger than $SOLZ. https://t.co/ibiKxizeeQ
— Eric Balchunas (@EricBalchunas) July 2, 2025
Investor interest depends on the underlying asset itself, not the existence of an ETF.
Ethereum spot ETFs, for example, launched in mid-last year, but saw muted flows at first. Demand only picked up months later, after stablecoin growth and fresh enthusiasm for Ethereum.
This might happen again, where funds tied to Bitcoin Cash or other underperforming assets may struggle to attract money without strong fundamentals.
Timelines and Market Impact
According to Hougan, generic standards could be finalised as soon as October. If so, the first wave of products might launch before the year’s end.
Altcoin ETFs are already starting to appear under the current process. Two funds tracking XRP and Dogecoin are expected this week, and Solana staking ETFs also entered the market earlier this year.
In fact, Bloomberg’s James Seyffart called the $12 million debut “a healthy start.”
First spot solana staking ETF is officially live. Healthy start to trading for a new ETF with ~$8 million in trading in first 20 min. pic.twitter.com/HBl7zzVv1F
— James Seyffart (@JSeyff) July 2, 2025
Bitfinex analysts note that more and more altcoin ETFs could be the spark that tokens need, especially when they are further down the risk curve.
Without these products, altcoins may lag behind Bitcoin and Ethereum in attracting mainstream capital.
The Bigger Picture for Crypto Investors
So what does this mean for investors? Easier access to ETFs could affect how capital flows into digital assets. Retail investors would also no longer need to manage wallets or exchanges.
Instead, they could buy crypto exposure through standard brokerage accounts.
Institutional players would also find it easier to allocate. Large asset managers already familiar with ETFs could add crypto products alongside stocks and bonds.
That visibility and accessibility could bring a new class of investors into the market.
Hougan calls the adoption of generic standards a “coming of age” moment for crypto. He sees it as a sign that digital assets are entering the mainstream financial system, even if inflows won’t arrive overnight.