The U.S. Securities and Exchange Commission (SEC) is discussing new listing standards to expedite the approval process for cryptocurrency ETFs, creating considerable excitement in the crypto sector.
SEC Discussions on New Approach
The SEC and major exchanges are discussing replacing the 19b-4 applications, which can take up to 240 days, with a listing standard based on predefined criteria. The new approach aims to standardize metrics such as market value, decentralization level, and wallet distribution, allowing any new cryptocurrency ETF meeting the criteria to be directly listed by an exchange without further SEC application.
Growth Expectations in Altcoin ETF Segment
The diversity of proposed ETF ideas is rapidly increasing. Issuers like 21Shares and Grayscale are preparing for the upcoming wave of approvals, focusing on altcoins such as Solana, XRP, and Dogecoin. The SEC's supportive stance, combined with a unified standard, is expected to make capital flows more predictable under a consolidated framework.
Expert Predictions and New Approach Impact
Bloomberg Intelligence analyst James Seyffart expects a 'floodgate effect' to occur when the final framework is enacted in the fall, leading to a stream of approvals for ETFs based on various assets. A transparent and low-cost approach to new products for investors is anticipated in the context of an increasingly competitive landscape.
The introduction of new SEC listing standards could significantly change the cryptocurrency ETF market by speeding up the approval process and creating new opportunities for investors.
