On July 30, 2025, the SEC officially rolled out universal listing standards for crypto ETFs and approved mechanisms for in-kind creation and redemption. These changes aim to integrate cryptocurrencies into the traditional financial system.
Major Changes in SEC Rules for Crypto ETFs
The SEC is replacing individual product reviews with standardized pathways requiring crypto ETFs to meet certain criteria:
* The token must have at least 6 months of futures trading history on the Coinbase Derivatives Exchange; * The ETF cannot be leveraged or inverse; * Full disclosures about NAV, position breakdowns, and liquidity policies must be transparent; * The ETP can be held in various legal entities and can consist of a diversified mix of crypto, commodities, securities, and cash; * In-kind creation and redemption are allowed, meaning users can exchange ETF shares directly for crypto.
Innovations in ETF Creation and Redemption Mechanics
Among the most revolutionary innovations is the approval of in-kind ETF creation and redemption. This enables market participants to exchange BTC or ETH directly for ETF shares and vice versa, reducing transaction costs and increasing market efficiency.
If ETF shares are trading at a premium relative to spot BTC, arbitrageurs can buy BTC and create new ETF shares to sell at market price.
Growing Interest in Altcoin ETFs
Any token with 6 months of futures trading on Coinbase is now eligible to launch an ETF. This opens the door for altcoins such as Solana and XRP to potentially enter the ETF market.
Such shifts could bring new capital inflows and increase mainstream awareness of altcoins in traditional finance.
The recent changes in SEC regulations represent a significant step toward integrating cryptocurrencies into traditional markets. The new standards allow for the creation of more predictable and accessible products, which may lead to substantial growth in crypto investments in the future.
