SEC Plans Easier Crypto ETF Path, Bitwise Sounds Alarm

SEC Plans Easier Crypto ETF Path, Bitwise Urges Investor Caution

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 17, 2025

Key Takeaways

The SEC is planning a faster approval process for crypto ETPs, which could lead to more products hitting the market by October;
Bitwise’s Matt Hougan warned that easier listings will not guarantee investor interest without strong demand for the underlying assets;
If market conditions improve, having ETFs ready could help traditional investors enter crypto more easily through familiar platforms.

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The US Securities and Exchange Commission (SEC) is preparing to introduce a straightforward process for approving cryptocurrency exchange-traded products (ETPs).

However, according to a September 15 report by Matt Hougan, Bitwise Chief Investment Officer, a simpler path to approval will not mean these funds will attract investors.

Hougan explained that if the SEC adopts standard rules for listing, which may happen in October, the market could see a rise in the number of crypto ETPs.

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He pointed out that this pattern has been observed before in the exchange-traded fund (ETF) industry, where similar rule changes have encouraged the launch of new products.

Even so, he warned that having more crypto funds does not automatically lead to more interest. If investors are not interested in a specific asset, the product linked to it might not gain much traction.

That said, Hougan also noted the long-term benefits of creating these products. When conditions in the crypto market improve, having ready-made ETFs could make it easier for everyday investors and institutions to move their money.

Currently, every crypto ETF proposal must go through a lengthy and detailed review. This process can take up to eight months, and approval is never guaranteed.

Under the new system, applications that meet all the necessary conditions could be approved in less than three months. Hougan even suggested that approvals would be nearly certain if all the listed criteria were met.

Bitwise recently submitted a request to the SEC to create the "Stablecoin & Tokenization ETF". What is its purpose? Read the full story.