Crypto ETFs set to flood the US market as SEC updates approval standards
TL;DR Breakdown
- Asset issuers are lining up to launch their crypto ETFs after the SEC relaxed its listing standards.
- Under the new approval standards, the SEC will limit approval timelines to about 75 days.
- ETF issuers are rushing to amend their previous filings.
Asset issuers are lining up to launch cryptocurrency exchange-traded funds (ETFs), capitalizing on the growing excitement around the assets. In addition, they are also looking to take advantage of the updated approval standards from the United States Securities and Exchange Commission (SEC), using its loose requirements to bring products into the market.
The updated standards for Crypto ETFs released by the SEC last week could encourage demand for exchange-traded products tied to several digital assets, including Solana and Dogecoin. Several ETFs have been launched since last year, with most of them centered around Bitcoin and Ethereum. While those were launched under stricter standards for issuers and exchanges, new products are expected to be launched under relaxed standards.
Regulators prepared to allow new ETFs to launch under relaxed standards
Presently, there are about 21 crypto ETFs in the United States, with each of them being either for Bitcoin or Ethereum or a combination of both. In addition, there have also been scores of filings for new products tied to the other coins submitted to the SEC pending approval. However, analysts have mentioned that they expect the SEC to act swiftly very soon and approve the first set of filings.
According to most analysts, the first products that will likely be approved under the new rules will be linked to digital assets Solana and XRP, with their debut predicted to come around October. “We’ve got about a dozen filings with the SEC now, and more coming,” said Steven McClurg, founder of Canary Capital Group, a digital assets investment management firm that designs and launches ETFs. “We’re all getting ready for a wave of launches.”
Since the SEC first unveiled the new listing standards in July, firms have scrambled to update their product filings to reflect the new changes, responding to specific comments and questions from the SEC. According to three people familiar with the matter, it is expected that a final wave of amendments will be carried out by the end of this week. “Those filings are pretty far along in the review process,” said Teddy Fusaro, president of Bitwise, a crypto asset manager. “These are the rules we had been anticipating.”
ETF issuers rush to make amendments to previous filings
In the last meeting held by the SEC on the adoption of the new listing standards, they eliminated the need for individual regulatory review of each crypto ETF application. This way, similar products that meet the predetermined standards will be allowed to launch without a lengthy case-by-case review and approval process. That is expected to reduce the approval time for new crypto ETFs to about 75 days or less, instead of the usual 270 days previously needed, an industry source noted.
The fourth quarter of 2025 is already looking like a boom time for crypto ETF issuers, noted Jonathan Groth, a partner at DGIM Law. Grayscale Investment was the first company to present its updated filing, rolling out its new Grayscale CoinDesk Crypto 5 ETF less than 48 hours after the SEC allowed its conversion from a private to publicly traded fund last week. The Grayscale ETF owns Bitcoin and Ethereum, the two digital assets with approved spot ETFs.
Peter Mintzberg, CEO of Grayscale, said its new ETF approval shows the company’s advocacy for “public market access, regulatory clarity and product innovation.” Meanwhile, to benefit from the new process, an ETF must at least meet one of the three core criteria. The ETF qualifies if the coin underlying its proposal already trades on a regulated market or has futures contracts approved and regulated by the United States Commodity Futures Trading Commission in the past six months.
