{"id":16106,"date":"2025-09-17T05:56:33","date_gmt":"2025-09-17T03:56:33","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=16106"},"modified":"2025-09-17T05:56:33","modified_gmt":"2025-09-17T03:56:33","slug":"enhancing-crypto-etfs-the-impact-of-secs-new-listing-standards","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/09\/17\/enhancing-crypto-etfs-the-impact-of-secs-new-listing-standards\/","title":{"rendered":"“Enhancing Crypto ETFs: The Impact of SEC\u2019s New Listing Standards”"},"content":{"rendered":"

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The US Securities and Exchange Commission simplifying the approval process for crypto exchange-traded products (ETPs) may result in a wave of new offerings, yet that doesn\u2019t ensure their triumph, a cryptocurrency executive cautions.<\/p>\n

\u201cThe implementation of standardized listing criteria \u2014 which may occur as soon as October \u2014 is likely to lead to an influx of new crypto ETPs. This is logical, but it\u2019s also supported by ETF history,\u201d Bitwise chief investment officer Matt Hougan stated<\/a> in a report released on Monday.<\/p>\n

Nonetheless, Hougan warned that the introduction of a crypto ETF should not be misconstrued as a revival of excitement for cryptocurrency.\u00a0<\/p>\n

Crypto ETFs\u2019 \u201csimple existence\u201d not a guarantee of success<\/h2>\n

\u201cThe simple existence of a crypto ETP does not ensure considerable inflows. There must be inherent interest in the underlying asset,\u201d Hougan remarked.\u00a0<\/p>\n

\u201cI suspect ETPs based on assets like Bitcoin Cash will struggle to draw flows unless the asset itself rejuvenates,\u201d he added.<\/p>\n

However, Hougan stressed that launching ETFs positions these products to surge when \u201cfundamentals begin to shift,\u201d as ETFs facilitate traditional investors\u2019 ability to allocate funds to crypto.<\/p>\n

Sygnum\u2019s research head, Katalin Tischhauser, informed Cointelegraph in February that there<\/a> \u201cis all this frothy excitement in the marketplace regarding these ETFs, yet no one can identify where significant demand will originate.\u201d<\/p>\n

Two new altcoin exchange-traded funds are anticipated to debut<\/a> in the US this week, tracking XRP (XRP<\/a>) and Dogecoin (DOGE<\/a>).<\/p>\n

The Altcoin Season Index achieved its peak score in 90 days on Sunday. Source: <\/em>CoinMarketCap<\/em><\/a><\/figcaption><\/figure>\n

On July 3, the US\u2019 inaugural Solana (SOL<\/a>) staking ETF concluded its first trading day with $12 million in inflows, which Bloomberg ETF analyst James Seyffart<\/a> described as a \u201cpromising start to trading.\u201d\u00a0<\/p>\n

At present, the SEC evaluates spot crypto ETFs on a case-by-case basis. Issuers must submit comprehensive proposals demonstrating that the underlying market is sufficiently liquid and resistant to manipulation, among other prerequisites.\u00a0<\/p>\n

New process would render compliant crypto ETFs \u201cvirtually assured\u201d\u00a0<\/h2>\n

The review may last up to 240 days, with no assurance of approval.<\/p>\n

Related: <\/strong><\/em>Spot BTC ETFs attract $642M, ETH adds $406M amid \u2018increasing confidence\u2019<\/strong><\/em><\/a><\/p>\n

Under the revised process that the SEC is developing, applications would be \u201cvirtually assured\u201d if they meet specific criteria, Hougan indicated. \u201cIt\u2019s also expedient: Applications would be sanctioned in 75 days or fewer.\u201d<\/p>\n

Bitfinex analysts noted on Aug. 26 that altcoins might not experience a widespread, significant rally until the approval of crypto ETFs that provide investors exposure further down the risk spectrum<\/a>.\u00a0<\/p>\n

Magazine: <\/strong><\/em>Meet the Ethereum and Polkadot co-founder who wasn\u2019t featured in Time Magazine<\/strong><\/em><\/a><\/p>\n