NYSE Arca has introduced a new proposal aimed at simplifying the registration process for crypto ETFs, allowing for avoidance of individual SEC approval.
Introduction of New Rule
On July 30, 2025, NYSE Arca submitted a regulatory change request to the SEC. The proposal introduces Rule 8.201-E(Generic), allowing commodity-based ETFs to list without individual SEC approval. Products meeting predefined criteria can launch automatically.
Risk Mitigation Criteria
The new rule allows an issuer's shares to be listed on an exchange if the underlying commodity has a contract on a Designated Contract Market for at least 6 months. The rule covers ETFs holding cryptocurrencies, cash, or securities, excluding leveraged or inverse products due to risk concerns.
Outlook and Expectations
The SEC has 90 days to decide on this proposal, with approval potentially occurring by late September or October 2025. Qualifying ETFs would launch immediately after rule adoption. NYSE Arca will monitor listed products continuously and enforce compliance.
The NYSE Arca proposal creates a clearer path for crypto ETF approvals and offers new opportunities for institutional investors in this sector.
