A new era of spot altcoin ETFs is about to begin, experts say.
The U.S. Securities and Exchange Commission (SEC) has changed the way it approves cryptocurrency spot exchange-traded funds (ETFs), news that is generating great excitement in the financial markets and the crypto community.
The traditional 19b-4 process and its binding deadlines are no longer central, according to Bloomberg senior ETF analyst Eric Balchunas, which means that The approval of these products is moving faster and their eventual arrival on the market is imminent..
According to Balchunas' comments, this change in the SEC listing process introduced a new, more streamlined and flexible mechanism that will revolve around the S-1 form and the SEC's Division of Corporation Finance's assessment. Based on this, Balchunas expects the SEC's final decisions on highly anticipated ETF applications, including those based on altcoins like Solana, Litecoin, and XRP, to be released in the coming days.
Altcoin ETFs are coming: get ahead and buy SOL hereThe end of the 19b-4 clock: the SEC simplifies the path for crypto ETFs
El form 19b-4 For years, spot ETFs have been the fundamental process through which markets and exchanges such as Nasdaq, NYSE Arca and Cboe BZX seek authorization to list new spot ETFs, triggering a review period that limited the time for the SEC to approve, reject or extend the evaluation. This process, although clear to the industry, often generated long delays or with a atmosphere of uncertainty about when those products might reach the market.
However, this year the SEC introduced new generic listing standards for ETFs, including cryptocurrency ETFs, which have radically changed this process. reported In this regard, the agency has said that, specifically, if the funds meet certain criteria related to underlying assets that have futures contracts on designated markets, Form 19b-4 is not required nor wait for the strict deadlines associated with this procedure.
According to Balchunas, this amendment renders the traditional 19b-4 deadlines and timers "useless," replacing them with the review of the S-1 registration statements filed by the issuers of these funds. Furthermore, said The S-1 form, while still essential for SEC review, doesn't have a fixed review deadline, so the pace depends on the relevant division within the regulator. This means the SEC can issue its decisions much more dynamically, speeding up the entire review process.
Altcoin ETF approval odds at their peak
Bloomberg's expert explained that, before this change, the odds of the SEC approving different cryptocurrency spot ETFs — such as Litecoin, Solana and XRP—ranged between 90% and 95%. Now, with the elimination of step 19b-4 and the adoption of generic standards, it speaks of practically irreversible probabilities, with a number that reaches 100%. The impression is clear: the regulatory agency is ready to give the green light to these crypto-asset financial products.
“Honestly, the odds are really 100% now.”, Balchunas commented on his post on X.
Currently, the technical dates that initially marked the possible deadlines for the SEC to decide on the applications are known, and although in theory Litecoin, Solana and XRP ETFs were due to be settled on October 2, 10 and 17, respectively, the agency could make a statement at any time. That is, it could advance approval or rejection without being bound by those aforementioned dates.
Furthermore, Balchunas commented that issuers seeking regulatory approval to list Solana on stock exchanges have just filed their Fourth Amendment on Form S-1, which indicates an active process close to completion.
This flow of imminent approvals not only involves these three cryptocurrencies, but also other digital assets such as Cardano, Dogecoin, Polkadot, Hedera and Avalanche, many of which have withdrawn their 19b-4 filings in accordance with the new protocols to qualify for the SEC's generic regime. The expected consequence is a rapid expansion of the catalog of crypto ETFs available in the US market, facilitating direct exposure to various crypto assets for institutional and individual investors.
Buy Solana here, quickly and safely with Bit2MeThe SEC's generic standards for crypto ETFs
The new generic listing standards represent a structural shift in how the SEC handles financial innovation related to cryptocurrencies. The agency adopted this measure arguing that there were "good reasons" to expedite approval and avoid lengthy delays that could hinder the entry of regulated investment vehicles into this space.
One of the essential requirements to benefit from this mechanism is that the underlying asset must have futures contracts on recognized designated markets, where there has been sufficient activity for at least six months.
This standard not only eliminates a bureaucratic layer, but also ensures a framework of transparency and liquidity that reassures the SEC about the quality and stability of the underlying assets.
Since the beginning of 2024, with the approval of Bitcoin and, subsequently, Ethereum spot ETFs, the industry has been waiting for the definitive opening for the rest of the digital assets seeking to replicate these formulas. With the arrival of Paul Atkins as chairman of the SEC last April, the federal agency appears to have adopted a more favorable and pragmatic approach toward this emerging asset class.
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