Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥
Key Takeaways
Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥
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.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
What is a Crypto Mining Pool? Is it Worth it? (Beginner-Friendly)
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.
To ensure the highest level of accuracy & most up-to-date information, BitDegree.org is regularly audited & fact-checked by following strict editorial guidelines & review methodology.
Carefully selected industry experts contribute their real-life experience & expertise to BitDegree's content. Our extensive Web3 Expert Network is compiled of professionals from leading companies, research organizations and academia.