US SEC Clears Rule Change for Grayscale ETH ETFs

TL;DR Breakdown

SEC cleared Grayscale’s Ethereum ETFs under the generic Rule 8.201-E, speeding approvals.
New rules could allow memecoin ETFs like SHIB or DOGE.
Analysts predict 100+ crypto ETFs in the next 6–12 months.

The US Securities and Exchange Commission (SEC) approved NYSE Arca’s rule change for Grayscale’s Ethereum ETFs. This allows the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF to transition from non-generic approvals to the exchange’s new Rule 8.201-E (Generic) framework.

This means that both funds can continue trading under generic listing standards without requiring case-by-case SEC approval. It moves the regulations towards a positive way for crypto ETFs. The move follows the Commission’s adoption of the new rule on September 17. This allows certain commodity-based trust shares to be listed within 75 days instead of the traditional 240-day approval process.

SEC Rules Could Spark Crypto ETF Boom

ETF analysts say the framework could turbocharge the next wave of crypto funds. James Seyffart of Bloomberg Intelligence said Wednesday, “We’re going to get well over a hundred ETFs probably that are going to be involved in the crypto space in the next six to 12 months.”

The new rules allow issuers to file ETFs backed by any asset with a futures contract on a regulated US exchange. That means even memecoins like Dogecoin and Shiba Inu technically fit the criteria. “So theoretically, you could file an ETF and within the next few months get a SHIB ETF,” Seyffart noted.

The approval of Grayscale’s Ethereum ETFs under the generic framework suggests the firm could use the same pathway to fast-track other products, while issuers eyeing XRP and Solana ETFs may also benefit.

The boom comes on the heels of the $152 billion now locked in Bitcoin ETFs.Analysts also point to the Trump administration’s pro-crypto stance as a key driver, with appointments of industry-friendly regulators clearing a path for the new rules.

Bitcoin ETFs Shed $363M Amid Market Selloff

Markets are dealing with high selling pressure. Bitcoin ETFs shed $363 million last week, led by Fidelity’s FBTC with $276.7 million in redemptions. ARK 21Shares’ ARKB lost $52.3 million, VanEck’s HODL dropped $9.5 million, and Grayscale’s GBTC recorded another $24.6 million in outflows.

Crypto stocks slumped in pre-market trading on Monday as BTC and altcoins extended declines. It triggered $1.6 billion in derivatives liquidations. Coinbase (COIN) dropped 3%, Strategy Inc. (MSTR) slid 2.3%, and Marathon Digital (MARA) and Metaplanet fell more than 3%.

The cumulative crypto market cap dropped marginally on Tuesday to stand at $3.88 trillion. Bitcoin price is down by around 4% over the last 7 days. BTC is trading at an average price of $112,341 at the press time. Ethereum also took the hit after outperforming Bitcoin on longer metrics. ETH price dropped by more than 7% over the last 7 days. It is trading at an average price of $4,185 at the press time. Its 24 hour trading volume has dipped by 39% to stand at $32.23 billion.