The SEC has approved general listing standards for ETFs, covering 12 altcoins.
At the end of July, the US Securities and Exchange Commission (SEC) announced new rules outlining general listing standards for cryptocurrency ETPs.
While it was stated that the approval of these rules would pave the way for the approval of ETFs pending before the SEC, the expected approval from the SEC has come.
Accordingly, the SEC approved general listing standards for commodity-based exchange-traded funds (ETFs).
This approval is also critical for altcoins awaiting approval from the SEC.
For the SEC to approve, altcoins applying for a spot ETF will need to be traded on an authorized futures market for at least six months.
At this point, when the SEC first published these rules, Bloomberg senior ETF analyst Eric Balchunas said that all altcoins that have been traded on the derivatives exchange of Coinbase, the largest US exchange, for more than six months would be eligible for a spot ETF.
Balchunas listed the altcoins that meet this requirement and are currently traded on the Coinbase futures platform as follows: “Litecoin (LTC), Bitcoin Cash (BCH), Dogecoin (DOGE), Polkadot (DOT), Shiba Inu (SHIB), Avalanche (AVAX), Chainlink (LINK), Stellar (XLM), Solana (SOL), Hedera (HBAR), Cardano (ADA), and XRP.”
Eric Balchunas stated that the adoption of general listing standards following the SEC’s approval could trigger a wave of approvals in the crypto ETP market. He noted that the number of ETFs approved by the SEC doubled the last time it implemented a similar standard, and predicted that more than 100 crypto ETFs could launch in the next 12 months.
