On Wednesday, the US SEC (Securities and Trade Fee) took a landmark step in crypto regulation, approving generic itemizing requirements for spot crypto ETFs (exchange-traded funds).
This new framework eliminates the case-by-case 19b-4 approval course of, streamlining the trail for a number of digital asset ETFs to enter the market within the coming weeks.
Grayscale’s Multi-Crypto Milestone
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Grayscale secured a first-mover benefit as its Digital Massive Cap Fund (GDLC) obtained approval below the brand new itemizing requirements. Merchandise that will probably be traded below the ticker GDLC embrace Bitcoin, Ethereum, XRP, Solana, and Cardano.
“Grayscale Digital Massive Cap Fund $GDLC was simply accredited for buying and selling together with the Generic Itemizing Requirements. The Grayscale workforce is working expeditiously to carry the FIRST multi-crypto asset ETP to market with Bitcoin, Ethereum, XRP, Solana, and Cardano,” wrote Grayscale CEO Peter Mintzberg.
The approval marks the US’s first diversified, multi-crypto ETP, signaling a shift towards broader portfolio merchandise slightly than single-asset ETFs.
Bloomberg’s Eric Balchunas defined that round 12–15 cryptocurrencies now qualify for spot ETF consideration.
Nonetheless, that is contingent on the altcoins having established futures buying and selling on Coinbase Derivatives for no less than six months.
This contains well-known altcoins like Dogecoin (DOGE), Litecoin (LTC), and Chainlink (LINK), alongside the majors already included in Grayscale’s GDLC.
Altcoins within the Highlight Amid New Period of ETF Eligibility
A number of belongings have already met the important thing situation, regulated futures buying and selling on Coinbase. For instance, Solana futures launched in February 2024, making the token eligible as of August 19.
“The SEC accredited generic ETF itemizing requirements. Property with a regulated futures contract buying and selling for six months qualify for a spot ETF. Solana met this criterion on Aug 19, 6 months after SOL futures launched on Coinbase Derivatives,” SolanaFloor indicated.
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Crypto buyers and communities additionally recognized which tokens stand to achieve. Chainlink group liaison Zach Rynes highlighted that LINK may quickly see its personal ETF. He famous that each Bitwise and Grayscale have already filed functions.
In the meantime, the Litecoin Basis indicated that the brand new requirements present the regulatory framework for LTC to be listed on US exchanges.
Hedera can also be within the highlight, with digital asset investor Mark anticipating an HBAR ETF. Market observers see the choice as a possible turning level for broader adoption, bringing the much-needed readability and accessibility for buyers.
On the identical time, it boosts confidence available in the market’s maturity.
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The overall sentiment is that with the SEC’s approval, the subsequent part of crypto ETFs is not a query of ‘if,’ however ‘when.’
The shift to generic itemizing requirements may develop the US-listed digital asset ETFs roster past Bitcoin and Ethereum. Such a transfer would usher in new funding autos masking a dozen or extra altcoins.
This represents the clearest path but towards mainstream, regulated entry to diversified crypto publicity. Extra importantly, it comes with out the friction of direct custody.
“We’re gonna be off to the races in a matter of weeks,” ETF analyst James Seyffart quipped.