The U.S. Securities and Exchange Commission (SEC) is brewing a major change that could completely transform the listing and approval process for cryptocurrency exchange-traded funds (ETFs).

According to independent journalist Eleanor Terrett, the SEC is in the early stages of developing a set of universal listing standards for crypto ETFs, aimed at significantly speeding up the approval of such funds. If this measure is implemented, it suggests that after the spot Bitcoin and Ethereum ETFs, more mainstream digital asset ETF products are expected to usher in a situation of "sluice gate opening."

### Fast Track: From 240 Days to 75 Days

Currently, the listing and approval of crypto ETFs follows a cumbersome and time-consuming process: the exchange must submit a 19b-4 form, which usually triggers a review period of up to 240 days. However, according to The Block, citing sources familiar with the matter, the new framework being discussed by the SEC will significantly shorten this approval time, potentially simplifying the process to just 75 days.

Sources say that this initiative is mainly driven by major exchanges, aiming to align the approval of crypto ETFs with the process for traditional ETFs.

"This is actually an initiative proposed by the exchanges to the SEC, and they said, 'We want you to approve these listing standards that we're proposing,'" sources revealed. "That way, every time we have a new crypto ETP (exchange-traded product), as long as it meets these standards, we don't have to seek approval from the SEC again. We can approve it ourselves."

### New Standards Considerations: Market Cap, Decentralization, and Token Distribution

The universal listing standards under discussion may cover a range of key metrics, including the total market capitalization of digital assets, the degree of decentralization, and the distribution of wallets. The SEC has also been involved in these discussions to ensure that any standards ultimately approved will effectively protect investors and promote market efficiency.

In addition, according to new guidelines released on July 1, issuers must provide detailed information in their disclosures regarding custody arrangements, risk factors, and the operational challenges of the cryptocurrency market. The SEC emphasized that comprehensive risk disclosures must cover price volatility, cybersecurity threats, cyberattacks, fraud risks, and competition from other products.

An SEC insider said, "They (the SEC) are actively communicating with the exchanges... they just want to make sure that any standards ultimately approved will protect investors and promote efficient markets."

Despite the anticipation surrounding this potential framework, ETF issuer 21Shares stated that they have not directly engaged with the SEC regarding the "proposed universal listing standards for tokenized ETFs." However, 21Shares has already submitted ETF proposals tracking Solana (SOL) and XRP.

21Shares stated, "If such a framework were implemented, it would significantly reduce the complexity and uncertainty of the current listing process, eliminating much of the guesswork and ambiguity inherent in the existing 19b-4 approval process."

In addition, Trump Media & Technology Group (operator of Truth Social) has filed documents with the SEC to launch a product called "Crypto Blue Chip ETF." The fund plans to primarily invest in Bitcoin (70%), Ethereum (15%), Solana (8%), XRP (5%), and CRO (2%).

This move not only marks the direct entry of a large listed company but also reflects the political dynamics behind it, with Trump pushing for a more crypto-friendly regulatory environment.

### Analyst Prediction: A "Flood" Could Arrive as Early as September

Bloomberg ETF analyst James Seyffart said in Tuesday's WOLF Trading X Spaces that he expects a draft of the framework to be released as early as this month and is expected to be implemented in September or October. Seyffart said confidently, "Then we're going to see a 'flood' of these other assets come to market, and that's what I'm looking forward to."

He and Bloomberg Senior ETF Analyst Eric Balchunas recently jointly predicted that the probability of SOL, XRP, and Litecoin ETFs being approved by the SEC is as high as 95%. At the same time, Dogecoin, Cardano, and Polkadot and other crypto ETF proposals also have a high probability of being approved, at around 90%.

This means that once the new listing standards framework takes effect, the cryptocurrency ETF market landscape will rapidly expand, covering more mainstream altcoins beyond Bitcoin and Ethereum, providing investors with a wider range of digital asset investment channels.

Although issuers such as 21Shares have stated that they have not directly participated in discussions on universal listing standards, it is generally believed that once the new framework is implemented, it will greatly reduce the complexity and uncertainty of crypto ETF listings. With regulatory clarity and the continuous emergence of new products, 2025 is expected to become a "breakout year" for crypto ETFs to truly go mainstream.

Original link
[Bitpush Bitpush]