The SEC opens the door to new cryptocurrency ETFs: This could change Bitcoin, Ethereum, and Solana

The SEC has announced the creation of new generic standards for listing crypto ETFs, facilitating their launch and boosting investment in Bitcoin, Ethereum, and Solana.

This measure, announced this week, eliminates the need for individual approval for each listed product, thus accelerating the arrival of a wide range of ETFs linked to digital assets to the market. 

The decision is supported by major exchanges such as Nasdaq, NYSE Arca, and Cboe Global Markets, and represents a significant change in the regulation of crypto assets in the country, opening the door for more cryptocurrencies other than Bitcoin and Ethereum to be listed on traditional financial markets.

With this new regulation, the SEC seeks to simplify a process that until now was lengthy and complex, which in the past has resulted in waits of up to 240 days for the approval of a single ETF. By establishing common parameters that issuers and exchanges must meet, the regulatory body reduces the maximum evaluation time to 75 days, offering a clearer and more efficient framework. SEC Chairman Paul Atkins noted that this initiative aims to foster innovation in digital assets and maintain U.S. markets as a global benchmark for financial innovation. 

New SEC standards open window for altcoin listings

Until now, the cryptocurrency ETF industry operated under the shadow of individualized scrutiny, with each application required separate reviews by both the fund manager and the exchange where the product was planned to be listed. This structure fueled a climate of uncertainty that discouraged the emergence of new products and complicated the management of issuers. With the newly approved rules, the SEC stipulates that as long as a new ETF meets a standard set of criteria, it can be listed without the need for an extensive, customized evaluation.

One of the most promising aspects is that eThis regulation recognizes certain cryptocurrencies as commodities rather than securities, which has significant legal and financial implications. This classification opens the door to cryptocurrency-based ETFs such as Solana, XRP, Dogecoin and Hedera, which until now faced serious regulatory restrictions when offering exchange-traded funds. The first products under this scheme are expected to include funds linked to Solana and XRP, demand for which has grown in recent years.

In short, this change signals a diversification in the offering of digital assets accessible through ETFs and may make it easier for investors to access tokens with different profiles and applications, increasing the depth and breadth of the regulated crypto market in the United States.

Towards a new era of crypto ETFs, beyond Bitcoin and Ethereum

The launch of Bitcoin and Ethereum spot ETFs in 2024 marked a milestone after years of facing regulatory challenges and complex processes. These initial offerings helped consolidate a regulated and more predictable financial product, generating confidence among investors and paving the way for greater stability in investing in digital assets. Now, with a new, clearer and more streamlined regulatory framework for the listing of crypto ETFs, an even wider door is opening for other cryptocurrencies, beyond Bitcoin and Ethereum, to also enter the market.

For experts, the evolution of these rules not only strengthens established ETFs, but drives the entry of new altcoin-based funds. 

It appears that the U.S. Securities and Exchange Commission (SEC) is more willing to integrate a greater variety of digital assets into the traditional financial system, in order to foster innovation and expand the investment tools available to those looking to diversify their portfolios. A new era is dawning in which financial products related to cryptocurrencies will become more varied, accessible, and transparent.

SEC Chairman Paul Atkins emphasized that the goal is for the United States to continue to be a benchmark for innovation in digital assets, highlighting the importance of balancing market protection with reducing regulatory barriers. Therefore, the measure responds to growing demands from the crypto sector for transparent and efficient mechanisms for accessing the exchange and represents explicit recognition by the regulatory authority.

“The Commission has today approved the generic listing and trading on three national stock exchanges of certain commodity-based exchange-traded products, including ETPs containing crypto-asset commodities… The simplified listing process will benefit investors, issuers, other market participants, and the Commission by reducing the time and resources required to bring new ETPs to market.”, reported the federal agency.

The importance of this evolution for the financial ecosystem

By allowing more cryptocurrencies to be represented in ETFs, The SEC is encouraging the institutionalization of digital assets and their incorporation into traditional investment portfolios. Furthermore, the speed with which these new ETFs can be approved and launched will contribute to a wider variety of crypto projects reaching brokerages. This means new alternatives for those looking to approach cryptocurrencies in a structured way, and a strong motivation for the industry to continue innovating and creating more competitive and reliable financial products.

For cryptocurrencies that don't yet have a spot ETF, this simplified and less bureaucratic process is a great opportunity to position themselves within the regulated market. Emerging projects and tokens with growth potential would thus have a valid and secure platform to gain ground and credibility with investors. It's clear that, by expanding its ETF portfolio, the SEC is not only strengthening the presence of the digital ecosystem but also anchoring it more deeply in the global economy.

While there is still a long way to go to fine-tune regulations and protect all stakeholders, this new policy represents a paradigm shift. It's not just a technical advance, but a tangible sign that U.S. laws are willing to embrace the financial innovation brought about by cryptocurrencies.

In short, this regulatory adjustment marks the beginning of a new era in which Bitcoin, Ethereum, and a growing number of altcoins can consolidate their position within the traditional financial market thanks to ETFs. This boost can energize the crypto sector, facilitate access to these assets, and strengthen their integration into the global financial system. Thus, the way cryptocurrencies are perceived and used could change, paving the way for a future where digital assets are central to everyone's investments.