SEC Approves New Listing Standards for Commodity-Based ETFs
The US Securities and Exchange Commission (SEC) has approved generic listing standards for commodity-based trust shares. These standards apply to Nasdaq, Cboe, and the New York Stock Exchange (NYSE).
With this approval, these exchanges can list and trade commodity-based ETFs without filing a separate rule change with the SEC. This change aims to speed up the approval process for such products.
Impact on Crypto ETFs and Market Innovation
The SEC’s new rules could help launch more spot crypto exchange-traded funds (ETFs) in the US. The approval covers ETFs based on commodities that meet certain criteria:
- The commodity must trade on a market that is a member of the Intermarket Surveillance Group (ISG).
- It must be the basis for a futures contract listed on a designated contract market for at least six months.
- Or it must be linked to an ETF with at least 40% exposure to the commodity.
If an ETF does not meet these standards, the exchange must file a separate proposal with the SEC before listing it.
SEC Chair Paul Atkins said, “By approving these generic listing standards, we are ensuring that our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets.”
Grayscale’s Digital Large Cap Fund Gets SEC Approval
The SEC also approved Grayscale’s Digital Large Cap Fund (GDLC). This fund offers exposure to a mix of large market cap digital assets. It includes Bitcoin, Ethereum, XRP, Solana, and Cardano.
GDLC aims to be the first multi-crypto ETF to trade in the US. This approval marks a significant step for crypto investment products in the country.
