#SECETFAapproval

"The SEC is moving forward on creating a framework for how they'd like to see all these crypto assets included in investment funds" to address the "explosion" in the number of ETFs now awaiting a regulatory verdict, said Sui Chung, CEO of crypto index provider CF Benchmarks.

Industry participants said they saw few surprises so far.

"The most interesting and important thing about this guidance is that it exists," said Matt Hougan, chief investment officer of Bitwise Asset Management, which has more than half a dozen crypto ETFs awaiting SEC approval.

"It suggests that the SEC acknowledges that crypto ETPs are becoming part of the mainstream and so it's trying to lay down rules of the road to save both issuers and SEC staff time and hassle."

The SEC guidance spells out that in order to be approved, issuers must clearly address, in "plain English", all factors that make crypto-based ETFs distinctive, such as custody arrangements and risks of the hyper-competitive landscape.