The SEC is currently looking into ways to streamline the approval process for exchange-traded funds (ETFs), specifically those related to cryptocurrencies. With new leadership in place, the agency is aiming to tackle the backlog of ETF applications and improve regulatory processes.
Plan for ETF Approval Streamlining
According to recent reports, the SEC is developing standards to simplify the approval process for token-related ETFs. It is suggested that if a token meets specific criteria, issuers could bypass the 19b-4 process and file an S-1, waiting only 75 days for listing on exchanges. However, the precise criteria for these standards have yet to be defined, although factors such as market capitalization, trading volume, and liquidity are being considered.
Approval Odds for Crypto ETFs
Currently, nine Solana-based ETFs have been filed with the SEC by issuers like VanEck and Bitwise Asset Management. These filings primarily focus on spot Solana ETFs, with some including staking provisions for generating yields. According to Bloomberg analysis, odds for altcoin ETFs' approvals are over 90% by the end of 2025, driven by constructive engagement with the SEC.
Positive News for Grayscale
The SEC has approved the conversion of Grayscale's Digital Large Cap Fund (GDLC) into a spot ETF. This fund will now be accessible on the NYSE Arca, allowing investors to gain regulated exposure to major cryptocurrencies. The approval follows an amended S-3 filing by Grayscale, reflecting ongoing dialogues with the SEC.
The SEC's move to simplify the ETF approval process could herald a new era for the crypto industry, allowing more products to enter the market. Meanwhile, Grayscale's approval showcases positive changes in the regulatory environment, creating opportunities for broader access to cryptocurrency investments.
