SEC Opens Door for Crypto ETFs on Major US Exchanges
The U.S. Securities and Exchange Commission (SEC) has approved new generic listing standards for commodity-based trust shares on Nasdaq, Cboe, and the New York Stock Exchange. This landmark decision allows the exchanges to list and trade these exchange-traded products (ETPs) without filing individual rule-change proposals with the SEC, streamlining the approval process and reducing delays.
According to SEC Chair Paul Atkins, the move is designed to “ensure that U.S. capital markets remain the best place in the world to support innovation in digital assets.”
What the New Standards Mean
Under the updated framework, an ETF can qualify for listing if the underlying commodity trades on an Intermarket Surveillance Group (ISG) member market, serves as the basis for a futures contract listed on a regulated derivatives exchange for at least six months, or is linked to another ETF with at least 40% exposure to the asset.
If an ETF fails to meet these criteria, exchanges will still need to submit a separate proposal under Rule 19b-4 before listing the product. This change aims to give investors more choice, lower barriers for issuers, and foster innovation across both traditional and digital asset markets.
Boost for Crypto ETFs and Market Expansion
The SEC’s decision comes as applications for spot crypto ETFs—covering assets such as XRP, Solana, Dogecoin, and Litecoin—have surged in recent months. With an October deadline looming, the approval of generic standards could fast-track a wave of new digital asset ETFs.
Bloomberg’s senior ETF analyst Eric Balchunas commented that the move could lead to “north of 100 crypto ETFs launched in the next 12 months.” He noted that over a dozen cryptocurrencies already qualify, thanks to their established futures contracts on the Coinbase Derivatives Exchange.
However, not all experts are convinced. Bloomberg’s James Seyffart expressed caution, suggesting that additional safeguards may be needed beyond the simple requirement of having a futures contract.
Grayscale’s Digital Large Cap Fund Gets Green Light
In addition to the generic standards, the SEC also approved the listing of Grayscale’s Digital Large Cap Fund (GDLC). This product will be the first multi-crypto ETF in the United States, offering exposure to a diversified basket of leading digital assets including Bitcoin, Ethereum, XRP, Solana, and Cardano.
The approval of GDLC highlights the growing momentum behind multi-asset crypto investment products and signals that regulators may be opening the door for broader exposure to digital assets in mainstream U.S. markets.
A Turning Point for Digital Asset ETFs
By reducing regulatory bottlenecks, the SEC’s decision could accelerate the rollout of crypto ETFs and bring new levels of investor participation. While concerns remain about oversight and safeguards, the framework marks a major step forward for digital asset integration into traditional financial markets.
With both generic listing standards and Grayscale’s GDLC now approved, U.S. investors may soon have unprecedented access to a diverse range of crypto-based ETFs.
