According to the new standards published by the U.S. Securities and Exchange Commission (SEC), cryptocurrencies with a futures trading history of at least 6 months on Coinbase's derivatives exchange can be approved as ETFs.
Bloomberg ETF analyst Eric Balchunas announced that the SEC has published new exchange applications containing general listing standards for exchange-traded products (ETPs) based on crypto assets. With this regulation, cryptocurrencies that have been trading futures for at least six months on Coinbase's derivatives market will meet the necessary conditions to be approved as ETFs. The first approvals are expected to come in September or October.
Balchunas stated that the number of cryptocurrencies that meet the criteria is about a dozen. The complete list of crypto assets currently trading on the Coinbase derivatives exchange and eligible for ETF approval is as follows:
Bitcoin (BTC)
Ethereum (ETH)
Litecoin (LTC)
Bitcoin Cash (BCH)
Dogecoin (DOGE)
Polkadot (DOT)
Shiba Inu (SHIB)
Avalanche (AVAX)
Chainlink (LINK)
Stellar (XLM)
Solana (SOL)
Hedera (HBAR)
Cardano (ADA)
XRP (XRP)
Thanks to the new standards, the path will be opened for popular altcoins accepted by the market to transform into ETFs, making it easier for investors to access these assets.
On the other hand, Balchunas stated that a different path will be followed for the introduction of new or meme coins as ETFs, which do not have a futures trading history. The ETF transformation of assets like Bonk and Trump Coin will be possible with applications under the 1940 Investment Company Act (40 Act), which provides previously used and indirect pathways. The structure that investors preferred more in the past was based directly on the spot market under the 1933 Securities Act (33 Act).
The SEC's move is interpreted as a significant step that could increase institutional investor interest in the crypto markets.$ADA