The Chicago Board Options Exchange (CBOE) has initiated a process to streamline the approval for cryptocurrency ETFs in the U.S., which may reshape the market.
CBOE Proposal
CBOE has filed with the U.S. Securities and Exchange Commission (SEC) proposing a rule that could significantly reduce the time required to list new crypto ETFs. If approved, issuers would no longer need to go through the lengthy 180-day application process.
Possible Impact on Crypto ETF Timelines
The SEC currently has up to 240 days to issue a decision on the proposal. This development follows reports suggesting that the SEC is considering reducing the listing time for Exchange Traded Funds to as little as 75 days. If CBOE's request is accepted, it could lead to quicker access for various digital assets.
Key Provisions of the Proposed Amendment
According to the filing, any underlying asset must have an existing contract on a designated market for at least 6 months before its listing. The proposal also includes requirements for staking and liquidity risk management programs, ensuring at least 85% of assets are available for redemption.
CBOE's proposal underscores the growing momentum for crypto in the U.S. market. With recent SEC approvals for similar assets, the regulatory environment appears to be softening.
