SEC Makes Spot Crypto ETF Listing Process Easier, Approves Grayscale's Large-Cap Crypto Fund

The U.S. Securities and Exchange Commission (SEC) connected Wednesday approved a acceptable of rules for exchanges to database exchange-traded products (ETPs) holding spot commodities, including cryptocurrencies, without requiring the agency’s idiosyncratic reappraisal each time.

With the decision, exchanges that conscionable the generic listing standards tin bring commodity-based spot shares to the marketplace directly, sidestepping the often-lengthy 19(b) regularisation filing process.

SEC hairman Paul Atkins said the determination was aimed astatine reducing barriers to accessing integer plus products successful regulated U.S. marketplaces.

"By approving these generic listing standards, we are ensuring that our superior markets stay the champion spot successful the satellite to prosecute successful the cutting-edge innovation of integer assets," SEC Chairman Paul Atkins said successful a statement.

Alongside the regularisation change, the bureau signed disconnected on the Grayscale Digital Large Cap Fund, which tracks the assets successful the CoinDesk 5 Index and presently consists of bitcoin (BTC), ether (ETH), XRP (XRP), Solana (SOL) and Cardano (ADA).

Read more: SEC's Pause of Grayscale Fund Is Likely Temporary

The regulator besides approved the motorboat of options tied to the Cboe Bitcoin U.S. ETF Index and its mini version, broadening the acceptable of crypto-linked derivatives disposable connected regulated U.S. markets.

Big determination for altcoin ETFs

The SEC's listing standards could perchance unfastened the mode for a question of spot-based altcoin ETFs that person been waiting for regulators' motion to participate the market.

"This is the crypto ETP model we've been waiting for," James Seyffart, ETF probe expert astatine Bloomberg Intelligence, said successful an X post. "Get acceptable for a question of spot crypto ETP launches successful coming weeks and months."

Echoing this sentiment, Kristin Smith, the President of Solana Policy Institute, said, "We are incredibly encouraged by tonight's news: the SEC continues to beforehand the regularisation of instrumentality by mounting wide rules of the roadworthy for US businesses and to instrumentality affirmative steps to let American investors to safely entree integer assets."

"These caller generic listing standards are a net-positive for U.S. investors, markets, and integer plus innovation. Excited for the adjacent question of crypto adoption!"