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SEC Eases Rules for Spot Crypto ETFs, 100 New Funds Expected

SEC Eases Crypto ETF Rules, Paving Way for Potential Surge in U.S. Listings

  • The Securities and Exchange Commission (SEC) eased requirements for spot crypto ETF applicants.
  • Analysts expect up to 100 new U.S. crypto ETFs to be listed in the next 12 months.
  • The SEC published new Generic Listing Standards to facilitate faster ETF approvals.
  • Fourteen digital assets are expected to qualify for expedited listings under the new rules.
  • The move aligns with SEC Chair Paul Atkins and recent executive orders emphasizing U.S. leadership in crypto markets.

The Securities and Exchange Commission (SEC) introduced new rules on Thursday that lower the barriers for launching spot cryptocurrency exchange-traded funds (ETFs) in the United States. The updated guidelines are expected to make it easier for investment companies to introduce spot crypto ETFs, following the SEC’s release of the new Generic Listing Standards.

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The new standards could result in as many as 100 new crypto ETFs in the United States within the next year, according to a senior ETF analyst at Bloomberg. Currently, there are fewer than 30 spot crypto ETFs listed on U.S. exchanges and about 97 total crypto ETF products, including leveraged, inverse, and derivatives-based funds. The SEC also approved the listing of the Grayscale Digital Large Cap Fund and evening-settled options on the CBOE Bitcoin US ETF Index and Mini-CBOE Bitcoin US ETF Index.

Bloomberg’s analyst noted, “The last time they implemented a generic listings standards for ETF, launches tripled.” Another analyst predicted a significant increase in spot crypto exchange-traded products (ETPs) in the coming weeks. According to Galaxy Research, 14 digital assets—including BTC (Bitcoin), ETH (Ethereum), XRP, SOL (Solana), BCH, ADA, DOGE, LTC, LINK, XLM, AVAX, SHIB, DOT, and HBAR—are likely to qualify for this expedited process under the new SEC policy.

These regulatory changes are a part of SEC Chair Paul Atkins’s response to an executive order aiming to strengthen the United States’ position as a global hub for cryptocurrency. The order, issued by the current administration, encourages regulatory agencies to facilitate digital asset innovation. Paul Atkins disagrees with his predecessors’ views that most digital tokens are securities. He says, “most crypto tokens are not securities, because it is a new day at the SEC.” Adding exemptions, safe harbors, and further amending rules to support crypto promoters are on his ongoing agenda.

Past policy shifts, including the adoption of generic listings standards, have led to a surge in ETF launches, according to ETF analysts. With the latest changes, experts anticipate that the number of crypto ETFs in the U.S. could double within a year.

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Additional details from the SEC indicate that these new standards are designed to create a faster review process and wider market access for various digital asset ETPs. The list of potentially qualifying assets reflects cryptocurrencies with established market presence and trading volume, providing a pathway for broader adoption and participation in the U.S. market.

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