Regulatory Green Light Given for Multiple Crypto ETFs under Updated Listing Norms by SEC
The United States Securities and Exchange Commission (SEC) has taken a significant step towards the wider adoption of cryptocurrencies by approving new generic listing standards for commodity-based trusts. This move is set to open the doors for a broader expansion of crypto Exchange-Traded Funds (ETFs), according to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence.
Under the new standards, trusts that meet defined criteria can list without a separate Commission order. This applies to Nasdaq, Cboe BZX, and NYSE Arca. The new rules stipulate that underlying assets for the new ETFs must trade on surveilled markets, have a futures history, or back an exchange-traded fund with significant exposure.
The first ETFs for XRP and Dogecoin officially launched on US markets on September 18, 2025. The XRP ETF is traded under XRPR, while the Dogecoin ETF trades under DOJE. The Dogecoin ETF was expected to be introduced around mid-September 2025, with the approval anticipated shortly before its launch.
Balchunas mentioned that currently, only two crypto ETFs exist under the Securities Act of 1933, often shortened to the '33 Act. However, with these new standards, about 12 to 15 coins could be eligible for ETFs, he stated. Balchunas expects Solana and Litecoin to lead the next wave of ETF approvals, potentially within a month.
The new standards also bar leveraged and inverse structures and are designed to prevent fraudulent and manipulative acts, improve market transparency, and protect investors. Trusts must publish daily holdings, net asset values, and liquidity policies.
Balchunas believes the SEC's latest action sets the stage for the broadest expansion of crypto ETFs since spot Bitcoin products debuted last year. He also commented that these new ETFs would be in the ETF wrapper, which has been vetted by the SEC.
However, an XRP ETF may lag due to the futures not being six months old, which is a criterion for the new standards. Dogecoin could follow Solana and Litecoin's ETFs, Balchunas added.
Market makers must still face trading limits and firewalls to block misuse of non-public information, ensuring a fair and transparent market for all participants. With these new standards, the landscape for crypto ETFs is poised for a significant shift, potentially bringing more institutional and public investors into the crypto space.
