Cboe BZX and NYSE Arca presented new listing standards to the SEC to expedite the approval processes for crypto ETFs.
Cboe BZX and NYSE Arca, the two leading exchanges in the U.S., proposed new rules to the SEC to accelerate the listing and trading processes for cryptocurrency-based exchange-traded funds (ETFs). This initiative could enable much faster approvals for crypto ETF applications.
According to current rules, exchanges must submit a 19b-4 form to the SEC for crypto ETF applications. The review and resolution of this form can take up to 240 days. With the newly proposed system, it will now be possible for ETFs meeting certain standards to be processed directly without going through this lengthy process. Cboe officials indicated that the SEC would decide on the proposed standards within a minimum of 21 days and a maximum of 240 days.
ETF applications have reached a record level.
In recent months, ETF applications containing many popular crypto assets such as Solana (SOL), XRP, and Dogecoin (DOGE) have reached the SEC in record numbers. The expectation of a more favorable regulatory atmosphere in the cryptocurrency sector following Donald Trump's inauguration in January accelerated these applications.
Cboe officials stated that the proposed new standards currently only include qualitative criteria, and that they will add quantitative conditions such as market size for crypto ETFs in the future.
In its application, NYSE Arca stated that these new standards would reduce the time to market entry and lower costs, thereby increasing competition among ETF issuers and benefiting investors.
On Tuesday, the SEC approved the in-kind withdrawal method for Bitcoin (BTC) and Ethereum (ETH) ETFs and increased the option limits for Bitcoin funds. These developments are considered significant steps for the evolution of the ETF market.