The SEC's new regulations streamline the approval process for crypto ETPs, potentially allowing major cryptocurrencies to qualify by October 2025.
The SEC has approved new listing standards for cryptocurrency exchange-traded products (ETPs), enabling any cryptocurrency with at least six months of futures trading to qualify for ETP listings. This regulatory change may lead to the approval of major digital assets, including Bitcoin and Ethereum, by October 2025. The updated framework eliminates previous market capitalization and liquidity requirements, fostering institutional demand as crypto ETFs see significant inflows. The SEC also approved in-kind creation and redemption mechanisms for ETPs, enhancing trading efficiency.