#AltcoinETFsPostponed What criteria must a cryptocurrency meet to qualify as an ETF (especially a spot ETF, which directly tracks the asset price)?

1. Must be considered a "commodity," not a "security"

This is the most important criterion.

Bitcoin (BTC) is recognized as a commodity by the CFTC and SEC → qualifies for ETF.

Ethereum (ETH) is currently under evaluation.

Solana (SOL) and other altcoins are unclear – if considered "unregistered securities," it will be difficult to have an ETF.

2. Must have a large, transparent, and easily monitored trading market (regulated market)

The SEC requires the ETF based on an asset to have a transparent underlying trading market that can detect price manipulation.

BTC has a large market that is closely monitored (such as Coinbase, Kraken…) so the ETF is approved.

With altcoins, the market remains difficult to monitor, decentralized, and lacks centralized liquidity.

3. Liquidity and market capitalization must be sufficiently large

The asset must have high liquidity and stable trading volume to ensure the ETF operates smoothly.

BTC and ETH meet this criterion. SOL is approaching this condition.

4. Must have a surveillance sharing agreement (SSA)

The SEC requires the ETF to collaborate with at least one exchange that can share data and monitor price manipulation.

For example: BlackRock's partnership with Coinbase in the BTC Spot ETF is a crucial point for approval.

5. Clear custody and security mechanisms

There must be a qualified crypto asset custodian (such as Coinbase Custody, Fidelity Digital Assets...)

To protect investors from the risk of asset loss due to hacking or fraud.