DeutschThe SEC is issuing a new rule that greatly simplifies the approval of crypto spot ETFs. Experts now expect a massive rush, which could result in many billions of US dollars flowing into the crypto market. Twelve previously unapproved coins could launch their own funds in the near future.
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Crypto ETFs: New SEC Rule to Cause Massive Growth
A new rule from the U.S. Securities and Exchange Commission (SEC) will lead to massive growth in the crypto ETF market. By enacting general rules that apply to all funds that track cryptocurrencies on the stock exchange, the approval process is drastically simplified.
It’s a bombshell in the US market. For months, the crypto scene has been waiting for the release of countless crypto ETFs. With the implementation of a new set of rules that the SEC announced yesterday, this milestone now seems to have finally been reached.
As a result, many crypto spot ETFs that previously had no approval are likely to come onto the market in the USA. Only Bitcoin and Ethereum spot ETFs have been fully approved in the United States of America so far. Resourceful asset managers have also managed to establish a Solana ETF by taking a detour.
The financial market has been showing huge interest in new crypto ETFs for many months. This trend is growing over time. At the end of August, the SEC already had 92 different applications, all of which aim to launch new listed crypto funds.
Thanks to the change of government in January, the US government wants to approve these applications. What was unthinkable under the previous government should now become reality. Instead of implementing each individual crypto ETF application in detailed work, the SEC will from now on only require compliance with basic requirements.
“The SEC today voted to approve rule changes proposed by three national securities exchanges to introduce generic listing standards for exchange-traded products holding spot commodities, including digital assets,” the Securities and Exchange Commission said in a press release.
The lengthy process of so-called 19b-4 applications is therefore eliminated. Exchanges must independently check compliance with SEC requirements. The trading of the investment can then begin directly without additional intervention from the SEC. Previously, the SEC could postpone approval for up to 240 days.
Hurdles remain? These crypto ETFs can start immediately
Individual hurdles continue to exist for crypto ETFs in the USA. In the future, the investments will not be possible without concrete regulatory approval. ETF expert Eric Balchunas made it clear: Only cryptocurrencies that the SEC has approved in advance can be traded on the stock exchange via funds.
The simplified approval process only applies to ETFs whose underlying cryptocurrency has already been approved for futures trading on Coinbase. This currently includes 14 different coins: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Polkadot, Shiba Inu, Avalanche, Chainlink, Stellar, Solana, Hedera, Cardano, XRP.
These cryptos can therefore be traded on the stock exchange in the USA in the near future – Bitcoin already received its approval in January 2024. Ethereum’s approval followed in July 2024. Both coins have since raised several billion US dollars from institutional investors. According to expert Eric Balchunas, this is a bullish signal for the crypto market.
“The SEC has approved generic listing standards that pave the way for the introduction of spot crypto ETFs (…) provided they have futures on Coinbase – without having to go through all this nonsense every time.”
Similar approvals in the past have already caused a huge rush of investors, Balchunas explains. He expects the launch of more than 100 crypto ETFs over the next year. He also assumes the influx of institutional money – and humorously depicts this expectation in a picture.
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