The U.S. Securities and Exchange Commission (SEC) has approved new rules that significantly accelerate the listing process for crypto exchange-traded funds (ETFs). By adopting the "generic" listing standards of Nasdaq, NYSE Arca, and Cboe BZX, the regulator has paved the way for spot crypto and other commodity-based ETFs to enter the market without the months-long wait for individual 19b-4 filings. According to Reuters, this step shortens the approval process from a maximum of 240 days to a minimum of 75 days.
In a document released on Wednesday, the SEC noted that the decision was made through accelerated approval "before the 30-day public comment period expires." The agency emphasized that the amendments submitted by the exchanges clarify definitions and include technical corrections that do not change the substance of the proposal.
The new framework authorizes exchanges to list products with "generic standards" that meet certain criteria under Rule 14.11(e)(4), which governs Commodity-Based Trust Shares. This eliminates the need for a separate 19b-4 filing for each product, allowing for market launch in as little as 75 days. According to The Block, the expedited approval will significantly shorten the processing time for the numerous pending crypto ETF filings.
This development opens the door to ETFs based on assets other than Bitcoin and Ethereum. Reuters notes that products indexed to major altcoins like Solana and XRP could arrive in the first wave, while the market could see new launches as early as October. Industry representatives believe the decision represents a turning point for digital asset products in the US by sidelining the "dual application and long waiting period" system.
SEC Chairman Paul Atkins stated that the approval "maximizes investor choice, encourages innovation, and reduces barriers to accessing digital asset products in the US's trusted capital markets." Internal dissenting opinions noted that expediting the authorization of spot crypto ETPs through exchange rules could have broader implications than previous practices. On the same day, the SEC also announced the listing and trading approval of the Grayscale Digital Large Cap Fund. The fund's composition is primarily Bitcoin (~80%) and Ethereum (~11%), while Solana, Cardano, and XRP are all in the portfolio with single-digit percentages.
What will change?
The new model allows exchanges to quickly list products that meet predefined criteria under the "general standard." This allows products that meet technical compliance to begin trading quickly, rather than filings bogged down in application-comment-extension cycles. This could increase product diversity, broaden institutional and retail investors' access to crypto assets through regulated channels, and reduce cost and time pressures on the part of the companies applying.
What are the risks?
The increased speed requires the seamless implementation of custody-sharing agreements, market integrity, and custody processes. Unless the legal and operational infrastructure is in place, objections and requests for additional clarification may arise during the "fast approval-fast launch" process. Still, market players are of the view that the current roadmap could “open the market widely.”
