SEC May Approve Generic Crypto ETP Listing Standard by October
Bitwise Chief Investment Officer Matt Hougan said the U.S. Securities and Exchange Commission (SEC) could adopt a generic listing standard for crypto exchange-traded products (ETPs) by October 2024. This change could speed up the approval process for crypto ETPs.
Currently, the SEC review process can take up to 240 days with no guarantee of approval. Hougan noted that the first spot Bitcoin ETP application was filed in 2013 but only approved in 2024. The new standard could reduce approval times to about 75 days for products that meet clear requirements.
New Crypto ETPs Could Enter Market Soon
Hougan expects many new crypto ETPs to launch after the SEC adopts the generic listing rule. These could include single-asset ETPs and index-based products. Tokens like Solana, XRP, Avalanche, Cardano, Chainlink, Litecoin, and Dogecoin may be among those featured.
The SEC’s approach may allow spot crypto ETPs if futures contracts for those assets trade on regulated U.S. exchanges. Examples include CME, Cboe, Coinbase Derivatives Exchange, and Bitnomial.
Approval Does Not Guarantee Investor Demand
Hougan warned that approval alone does not ensure strong investor interest. He cited spot Ethereum ETPs, which saw low inflows after their June 2024 launch. Demand only grew later due to stablecoin use and corporate treasury buying.
He added that crypto products tied to assets like Bitcoin Cash might face similar challenges unless those tokens regain popularity.
