The U.S. Securities and Exchange Commission (SEC) is moving closer to approving new cryptocurrency ETFs, according to Bloomberg analysts.
New SEC Standards for Crypto ETFs
The SEC has proposed listing standards focused on derivatives markets. The commission will allow cryptocurrency exchange-traded funds whose futures have been trading for at least six months on Coinbase Derivatives or the Chicago Mercantile Exchange.
Experts' Opinions on Upcoming Changes
Bloomberg analyst Eric Balchunas noted that this rule is a significant development, paving the way for ETFs for about a dozen altcoins. His colleague James Seyffart pointed out that the SEC is effectively handing over decision-making to another agency, the Commodity Futures Trading Commission (CFTC). He stressed that the proposed standards do not mention market capitalization, liquidity, or the number of tokens in circulation.
Impact of Changes on the Cryptocurrency Market
Balchunas clarified that this path is not suitable for meme coins or assets with less developed markets, which would require a more complex approval process involving the Investment Company Act of 1940. Balchunas estimates that the first approvals could come as early as September or October, marking a crucial step toward integrating cryptocurrencies into traditional financial markets.
Changes in SEC regulations could significantly impact the cryptocurrency market by opening up new investment opportunities for altcoins. This also highlights the growing recognition of cryptocurrency assets within traditional financial systems.
