A potentially transformative change is underway in the U.S. markets as the SEC ushers in a new era for cryptocurrency ETFs. The agency’s streamlined rules are poised to unlock a flood of new funds tied not only to Bitcoin and Ethereum but also a broader set of digital assets.
Prior to the change, crypto ETFs were subject to extensive individual reviews, with approval times often stretching beyond 270 days. The SEC’s new “generic listing” regime shifts that paradigm, cutting the process to 75 days for qualifying products.
The changes allow major exchanges (NYSE, Nasdaq, Cboe) to use these standard rules, bypassing dual filings and reducing regulatory bottlenecks.
To utilize this pathway, funds must satisfy one of several benchmarks:
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Underlying crypto listed on regulated markets,
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Futures contracts regulated by CFTC with six months of trading history,
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Or existing ETFs holding at least 40% directly in the asset.
The reactions have been swift. Grayscale already launched a multi-asset fund shortly after the change. Asset managers such as VanEck and Canary Capital are racing to refile applications under the new framework.
But hurdles remain. The viability of ETFs tied to smaller tokens depends on investor demand, liquidity, and willingness to diversify beyond established coins. Some filings may not pass the framework’s benchmark test.
Nonetheless, the shift signals growing regulatory acceptance of digital assets. If successful, this may help close the regulatory gap between traditional finance and the crypto ecosystem.
