Crypto ETFs: SEC’s New Rule Shakes the Market!

by

Key Takeaways 🗝️

The U.S. Securities and Exchange Commission (SEC) seems to be fast-tracking crypto ETF approvals. But, as always, there’s a twist: Solana might steal the spotlight before Ripple. 🐦

Ah, the SEC—ever the enigmatic overseer of the financial world. Now, it seems they’ve devised a new “general listing standard” that could expedite the approval of altcoin ETFs by September or October. 📅 But, of course, nothing is ever straightforward in the labyrinth of bureaucracy.

On the 30th of July, the Cboe BZX exchange submitted a request for rule changes to streamline the crypto ETF approval process. 🗳️ Greg Xethalis, general counsel at VC MultiCoin Capital, explained that these “generic listing standards” would link approval to the Futures market. Any asset with over six months of Futures market tracking on Coinbase could be listed. 📊

Wait, what? Did someone say ETF staking provision? Because apparently, that’s also on the table. Xethalis noted that other public TradFi exchanges like Nasdaq and NYSE might follow suit with similar filings. 📜 Because, you know, when one exchange jumps, the others must leap too. 🐒

A Big Deal for Altcoin Crypto ETFs? 🤔

Bloomberg’s senior ETF analysts, Eric Balchunas and James Seyffart, weighed in on the update. Seyffart hailed it as a “pretty big deal,” stating,

“This is the framework and generic listing standards we’ve been looking for with regard to digital assets in an ETF wrapper. This is a pretty big deal.”

Balchunas chimed in, predicting that Futures contracts tracking could make approvals likely for Litecoin [LTC], Dogecoin [DOGE], Solana [SOL], Ripple [XRP], and others by September or October. 📈

“It’s about a dozen of the usual suspects, the same ones we had at 85% or above in our odds. The question still, though, is timing. Likely Sept/Oct for all.”

For context, spot Bitcoin [BTC] and Ethereum [ETH] ETFs were approved after launching CME Futures. 📉 But, naturally, Coinbase derivatives have more altcoins than CME Futures, so they’ll also be considered for spot ETF approvals. 🕵️‍♂️

Seyffart pointed out that since Futures trading falls under the CFTC (Commodity Futures Trading Commission), the agency will have a significant say in what the SEC approves. 🎤 So, it’s a bureaucratic tango between agencies—cue the dramatic music. 🎶

From a Futures trading perspective, SOL began trading on CME Futures on the 17th of March, while XRP followed later on the 19th of May this year. 📅 If the new General Listing Standard (GLS) rules were applied as-is, spot SOL ETF approval could happen earlier (September 17) than XRP, added Xethalis. 🏁

“The timeline would be slightly later for XRP Futures, which launched after SOL Futures. Nevertheless, SOL and XRP ETPs appear highly likely to launch by the beginning of Q4.”

The SEC has delayed several altcoin and crypto index ETF applications, including a recent filing from President Donald Trump-linked Truth Social. 🤷‍♂️ ETF experts have linked the delay to these listing standards. Now, the question remains: How swiftly will the agency act under the new framework? 🏃‍♂️

So, there you have it—another chapter in the endless saga of regulatory maneuvering, market speculation, and bureaucratic chess. 🎲 Who will emerge victorious? Only time will tell. Until then, grab your popcorn and watch the drama unfold. 🍿

Read More

2025-07-31 14:26