Crypto ETFs set to flood US market as regulator streamlines approvals

Crypto ETFs set to flood US market as regulator streamlines approvals

U.S. asset managers are moving quickly to introduce new crypto investment products following the SEC’s implementation of standardized listing rules. These updated guidelines replace the old, case-by-case approval process with a clearer, rules-based framework that applies to qualifying spot commodity exchange-traded products (ETPs), including those tied to digital assets. The change is designed to streamline approvals and provide issuers with more certainty as they structure offerings.

Analysts believe this shift will accelerate the arrival of mainstream crypto ETFs. In particular, Solana- and XRP-linked ETFs are expected to be among the first to benefit, with potential launches as early as October if filings satisfy the SEC’s new standards. This would mark another major step in the integration of digital assets into traditional financial markets.

What the SEC crypto ETF listing standards change

The SEC’s vote approved generic listing standards at major exchanges (e.g., NYSE Arca, Nasdaq, Cboe), allowing spot commodity ETPs that meet predefined requirements to list without submitting a new Rule 19(b) proposal each time. The shift is designed to “streamline the listing process” and broaden investor choice in a regulated environment. Typical approval windows are now ~75 days, down from as long as ~240–270 days under the old, bespoke process.

Under the approach described by market participants and filings, a crypto ETF can qualify if (1) its underlying coin trades on a regulated market or (2) has CFTC-regulated futures trading for ≥6 months; alternatively, an existing ETF with ≥40% direct holdings in that asset may open the door to approval.

Pipeline: filings, first movers, and timing

There are now 21 U.S. ETFs tied to bitcoin and/or ether, and issuers have submitted dozens of new filings for other coins. Analysts anticipate the first Solana and XRP ETFs under the new standards could list in early October. “We’ve got about a dozen filings with the SEC now, and more coming,” said Steven McClurg of Canary Capital. Bitwise president Teddy Fusaro added that filings are “pretty far along.”

Products already launched

Grayscale moved first, converting and launching the Grayscale CoinDesk Crypto 5 ETF (GDLC) less than 48 hours after the SEC vote. The fund holds bitcoin, ether, XRP, solana, and cardano, expanding beyond single-asset exposure and signaling how multi-coin baskets may proliferate under the new regime. Reuters+2ETF Database+2

Demand questions for long-tail assets

Law firms and issuers say Q4 2025 could be a boom period for listings, but investor appetite for ETFs tied to lesser-known coins remains unclear. VanEck’s Kyle DaCruz cautioned that not all existing filings will qualify on day one, and investor education windows may be short.

Timeline under SEC crypto ETF listing standards

• SEC vote.
  Sept. 17–18, 2025 (orders and press materials published).

• First wave.
  Early October 2025 (expected Solana/XRP products if eligibility met).

• Ongoing cadence.
  Rolling listings as exchanges certify compliance with generic standards.

<section id=”howto”> <h3>How to evaluate a new crypto ETF before investing</h3> <ol> <li id=”step1″><strong>Step 1:</strong> Confirm the ETF qualifies under the new listing framework (e.g., CFTC-regulated futures or comparable eligibility).</li> <li id=”step2″><strong>Step 2:</strong> Review the prospectus: asset mix, custody model, fees, creation/redemption mechanics.</li> <li id=”step3″><strong>Step 3:</strong> Check market structure: listing exchange, authorized participants, liquidity providers, spreads.</li> <li id=”step4″><strong>Step 4:</strong> Assess risks: concentration, regulatory, tracking error vs. index, tax treatment.</li> <li id=”step5″><strong>Step 5:</strong> Compare alternatives (single-asset vs. baskets) and align with portfolio objectives.</li> </ol> <p><em>Note: Process may vary by product and jurisdiction. Read official filings before acting.</em></p> </section>

Context & Analysis

 The SEC’s generic standards move ETF oversight from bespoke approvals to pre-set rules, similar to how equities and many ETPs already list. That predictability lowers issuance friction and may compress fees. But rapid proliferation raises education and suitability concerns for retail investors, especially in assets with thinner liquidity or idiosyncratic risks. Expect initial flows to concentrate in the most liquid names and brand-name issuers, with long-tail products competing on fees, branding, and index design.

Conclusion

With the SEC’s generic listing standards now active, U.S. exchanges are preparing for a broader wave of crypto ETFs that go beyond the established bitcoin and ether products. The simplified framework is expected to open the door for quicker approvals and a wider variety of offerings.

In the immediate term, attention is centered on Solana and XRP ETFs, which could debut in October if filings progress smoothly. Looking ahead, however, the bigger question is whether investors will also embrace more complex products, such as diversified crypto baskets and funds tracking smaller-cap digital assets.

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