SEC Approves Generic Listing Standards Clearing Path For Crypto ETPs

The SEC has approved “generic listings standards” that will clear the way for spot crypto ETFs to launch, reported Bloomberg’s ETF expert Eric Balchunas on Wednesday.

The move allows exchanges to list ETPs holding spot commodities, including digital assets, without requiring individual SEC approval for each product. It also eliminates the lengthy, case-by-case approval process that previously required months or years.

“This is the crypto ETP framework we’ve been waiting for,” commented James Seyffart, who added:

“Get ready for a wave of spot crypto ETP launches in coming weeks and months.”

SEC Smoothing The Path For Crypto

Basically, if the asset has a futures contract trading on a regulated exchange such as Coinbase for six months, it will be allowed to become a spot ETF, he explained. Aside from Bitcoin and Ethereum, there were 12 crypto assets trading as futures on Coinbase, which now have an easier path to becoming spot ETFs.

“By approving these generic listing standards, we are ensuring that our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets,” said SEC Chairman Paul Atkins.

“This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets.”

Nova Dius President Nate Geraci also applauded the move:

“First, this SEC should be applauded for moving so quickly to implement a generic listing standards framework.”

Two years ago, the previous SEC was still battling Grayscale over a spot Bitcoin ETF, he said before adding its amazing how far we’ve come.

The regulator also approved the Grayscale Digital Large Cap Fund, which holds spot digital assets based on the CoinDesk 5 Index, and afternoon-settled Bitcoin ETF options. However, it delayed the decision on the Truth Social Bitcoin ETF.

Altcoin ETFs Due Today

This week is a big one for altcoin ETFs with two highly anticipated launches today.

The REX-Osprey XRP ETF (XRPR) and the REX-Osprey Dogecoin ETF (DOJE) are both expected to begin trading on Thursday.

It will be a first for a spot XRP fund and a spot meme coin fund in the United States, and analysts expect a slew of them to follow.

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Source: https://cryptopotato.com/sec-approves-generic-listing-standards-clearing-path-for-crypto-etps/