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SEC Speeds Up Crypto ETF Approvals with New Listing Standards
Key Takeaways
- The SEC has adopted a general framework to simplify and speed up spot crypto ETF approvals across major US stock exchanges;
- New rules mean ETFs no longer need individual reviews if their assets meet trading or data-sharing criteria under Rule 6c-11;
- This update could lead to more crypto ETFs in the market, with experts expecting a rise in investment product launches soon.
The US Securities and Exchange Commission (SEC) has introduced a new set of guidelines designed to facilitate the listing of spot cryptocurrency exchange-traded funds (ETFs) more easily.
Under these rules, not every new fund proposal will require its own detailed review. Instead, exchanges can use a general framework that applies to a wide range of crypto ETFs.
This change applies to major stock exchanges, including Nasdaq, NYSE Arca, and Cboe BZX. The updates fall under Rule 6c-11 and aim to shorten the approval timeline. Previously, it often took several months for each individual product to be reviewed.
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To qualify under the new rules, the digital asset held by the ETF must meet certain requirements. It should either trade on a monitored market that shares data through the Intermarket Surveillance Group or be linked to a futures contract that has been listed for at least six months and is under a data-sharing agreement.
Another way to qualify is if the asset is already tracked by an existing ETF that has at least 40% exposure and is listed on a national exchange.
SEC Chair Paul Atkins commented that these updated rules are intended to support innovation and increase investment options by reducing the time and effort needed to launch crypto ETFs in US markets.
Additionally, James Seyffart, an ETF expert at Bloomberg, noted that this update could lead to a surge in new crypto investment products in the near future.
On September 15, Matt Hougan, Chief Investment Officer at Bitwise, shared his thoughts on the SEC's faster crypto ETF approval process. What did he say? Read the full story.