Crypto ETFs now cleared for generic listing by SEC, marking a significant leap: 'The path is paved!'
The Securities and Exchange Commission (SEC) has taken a significant step forward in the crypto world, announcing new rules for Exchange Traded Funds (ETFs) that are expected to open the door for Solana and XRP ETFs, among others.
This overhaul marks a departure from the previous case-by-case approach, replacing the need for separate filings from both exchanges and asset managers. The move is aimed at strengthening the U.S. capital markets' global standing in digital asset innovation, as emphasized by SEC Chairman Paul Atkins.
The revised framework for crypto ETFs requires that the underlying asset either trade on a market connected to the Intermarket Surveillance Group or have monitoring access, or be linked to a Futures contract with at least six months of official trading history and a surveillance-sharing agreement.
The SEC's ruling under Rule 6c-11 grants exchanges the ability to adopt generic listing standards for new digital asset products. As a result, NYSE Arca, Cboe BZX, and Nasdaq have been given the green light to adopt these standards for spot crypto ETFs.
Industry players, including VanEck, 21Shares, and Canary Capital, have long been pressing the SEC to reinstate a "first-to-file" framework for applications. This framework, which prioritizes the earliest valid filings, aims to create a more orderly process for ETF applications, thereby encouraging a fair and efficient review mechanism.
One company that has already taken advantage of this new opportunity is Bitwise, which has recently filed for a "Stablecoin & Tokenization ETF" designed to track an index that includes stablecoin issuers, blockchain infrastructure firms, payment processors, exchanges, retailers, and regulated Bitcoin [BTC] and Ethereum [ETH] ETPs.
The maximum review period for crypto ETF applications has been reduced to 75 days, down from a previous limit of 240 days. This reduction is expected to speed up the approval process, making it easier for new ETFs to enter the market.
As the crypto world eagerly awaits the launch of these new ETFs, market watchers are keeping a close eye on the prices of Solana and XRP. According to CoinMarketCap, XRP was trading at $3.07 after a 1.29% gain in the past 24 hours, while SOL recorded a 3.15% increase. Other notable mentions include DOGE, which climbed 3.5% to $0.2788, and LTC, which bucked the trend, slipping 0.06% to $115.28 over the same period.
However, Steve McClurg, CEO of Canary Capital, added that there is still a lot of work to be done despite the SEC's decision. Teddy Fusaro, president of Bitwise Asset Management, commented on the shift in the SEC's sentiment, stating that it reflects growing institutional acceptance and evolving regulatory clarity in the crypto asset landscape.
In conclusion, the SEC's new rules for crypto ETFs are a significant step forward in the digital asset industry. With the potential launch of Solana and XRP ETFs on the horizon, the crypto world is buzzing with anticipation. As the review process becomes more streamlined and efficient, we can expect to see more innovative digital asset products enter the market in the near future.
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