The U.S. Securities and Exchange Commission (SEC) is close to approving new cryptocurrency ETFs. This was reported by Bloomberg market analyst Eric Balchunas.
The regulator proposed listing standards that focus on derivative markets.
The SEC allowed exchange-traded funds for cryptocurrencies whose futures have been traded for at least six months on Coinbase Derivatives or the Chicago Mercantile Exchange.
Balchunas called this rule 'a pretty significant event.' According to him, it paves the way for ETFs for about a dozen altcoins. He added that for approval, it is sufficient for futures on actively traded assets to have been conducted on a derivatives exchange like Coinbase for more than six months.
Bloomberg market analyst James Seyffart believes that the SEC is essentially handing decision-making over to another agency.
"CFTC decides which asset futures can be launched on, and the presence of futures is the main requirement of this rule," he wrote.
Seyffart emphasized that the proposed standards do not mention market capitalization, liquidity, or the number of tokens in circulation.
Balchunas noted that this path is not suitable for meme coins or assets with less developed markets.
For them, a more complex framework is required — the Investment Company Act of 1940. Most spot crypto ETFs are regulated under the Securities Act of 1933, which issuers prefer due to simpler requirements.
According to Balchunas, the first approvals could occur as early as September or October. The rule change is an important milestone in the integration of cryptocurrency into traditional financial markets. It offers a clearer path for the identification of ETFs for other digital assets that include Bitcoin and Ethereum.
Recall that in June, Balchunas predicted a 'summer of altcoin ETFs.' According to him, as early as July, the U.S. Securities and Exchange Commission may approve instruments based on a basket of cryptocurrencies.
In July, the first Solana-based ETF with staking functionality was launched in the U.S. — REX-Osprey Solana Staking ETF.