What a shortcut for ETF approvals could mean for crypto

The SEC's recent approval of new listing standards for commodity-based trust shares signals a potential acceleration in the launch of spot crypto ETFs. Experts like Bloomberg's James Seyffart view this as a positive step towards increased ETF offerings in the crypto market, particularly benefiting from clearer regulations. While the policy facilitates quicker approvals for previously vetted assets like Bitcoin and Ethereum, it may drastically reduce the approval timeline for other digital assets from years to months. However, concerns regarding investor protection have been raised, notably by SEC Commissioner Caroline Crenshaw, who emphasized the need for caution with untested investment products. Despite assurances that existing diligence requirements remain intact, there is skepticism about the implications for retail investors. Industry insiders believe that the new standards will help average investors better differentiate between cryptocurrencies when selecting ETF investments, potentially identifying which digital assets have retail appeal. In the wake of the SEC's change, Hashdex has moved to include popular assets such as XRP, Solana, and Stellar in its ETF offerings, with expectations that many more assets could be eligible soon.

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