The U.S. Securities and Exchange Commission (SEC) has updated standards for crypto ETFs, relying on CFTC-approved futures and Coinbase listings, which could significantly change the market.
Changes in SEC Standards: Focus on CFTC and Coinbase
SEC has introduced a new standard, which implies that digital assets must trade as futures for at least six months. Eric Balchunas, senior ETF analyst at Bloomberg, notes, "The SEC’s proposed standard suggests a key requirement: the digital asset must have traded as a futures contract for at least six months." This change broadens crypto ETF eligibility beyond Bitcoin and Ethereum.
New Strategies Expected Based on ETF Market
Immediate impacts are anticipated on broader participation in the crypto market. Market participants indicate potential liquidity increases and new investment inflows. Potential changes in ETF qualification may rapidly alter trading volumes and investor strategies.
New Focus on Futures Alters Approval Approach
Previously, ETF approval processes were quite stringent. Now, the focus on futures contracts presents a progressive regulatory step. Expert opinions suggest this change could play a significant role in the legitimacy growth of the crypto economy.
The SEC's changes to standards open new opportunities for crypto ETFs, which could lead to increased liquidity and new capital flows into the market. This may contribute to broader adoption and a higher status for crypto assets.
