The U.S. Securities and Exchange Commission (SEC), has approved generic listing standards for commodity-based exchange-traded products, a move expected to speed up the launch of cryptocurrency funds. The approval applies to Nasdaq, Cboe BZX, and NYSE Arca, eliminating the need for individual approvals under Section 19(b) of the Securities Exchange Act of 1934.
Previously, spot crypto fund issuers faced lengthy reviews that required public comment, limiting most launches to bitcoin and ether. The streamlined process is anticipated to reduce costs, shorten launch timelines, and broaden investor access to cryptocurrencies through ETFs. Alongside the new framework, the SEC approved the Grayscale Digital Large Cap Fund, the first multi-crypto ETF in the U.S., which includes bitcoin, ether, XRP, Solana, and Cardano.
Industry experts see the decision as a significant regulatory step. Bloomberg analyst James Seyffart said the change will accelerate launches, noting, “We’re gonna be off to the races in a matter of weeks.” Bitwise CIO Matt Hougan highlighted that generic listing standards previously increased ETF launches from about 117 per year to nearly 370.
Digital assets platform Galaxy estimates that 10 tokens, including bitcoin, dogecoin, solana, litecoin, and polkadot, currently meet the new criteria. The move follows the SEC’s approval of spot bitcoin ETFs in January 2024 and ether ETFs in July, which now manage approximately $150 billion and $30 billion in assets, respectively.
