Main Points :
- The U.S. SEC has approved generic listing standards for commodity-based trust shares, enabling exchanges like Nasdaq, NYSE Arca, and Cboe to list spot crypto ETFs under streamlined criteria rather than case-by-case approvals.
- The approval cuts the potential approval time for qualifying crypto ETP/ETF products from up to ~240 days down to about 75 days.
- To qualify under the generic standard, a crypto asset must satisfy certain conditions: trading on a market that’s an Intermarket Surveillance Group member, or its futures contract must have been traded for at least six months on a CFTC-regulated designated contract market; or there must be an ETF already listed with ≥ 40% exposure to the asset.
- The SEC has also approved changes to allow in-kind creations and redemptions for crypto ETPs (including Bitcoin and Ethereum), aligning them with commodity ETP norms and reducing cost/inefficiencies.
- There is optimism but also caution: while many expect a wave of new ETFs (including altcoins like SOL, XRP, DOGE, LTC, AVAX, LINK, etc.), flows into those products are not guaranteed; underlying asset fundamentals, market demand, regulatory surveillance, and investor protection remain key risk factors.
- Some concern exists, even within the SEC: Commissioner Caroline Crenshaw (in your original Japanese article) warned that lowering the bar too much or launching insufficiently vetted products could pose risks to investors.
1. What Are “Generic Listing Standards” and Why They Matter
Under the newly approved rules, crypto-asset-based exchange-traded products (ETPs), particularly spot-crypto ETFs, may be listed and traded more quickly if they satisfy a pre-defined set of eligibility criteria. In effect, this removes the need for each new product to undergo a full SEC review via Rule 19b-4 if it meets those generic standards. Exchanges like Nasdaq, NYSE Arca, and Cboe have proposed amendments for their rules to include these generic listing standards under the “Commodity-Based Trust Shares” category.
The importance is that this framework:
- Provides predictability to issuers: they know what metrics or conditions their token needs to satisfy ahead of time.
- Reduces regulatory uncertainty and time delays.
- Potentially brings more altcoin products into regulated U.S. markets.
2. Key Eligibility Criteria Under the New Pathway
For a crypto asset or product to qualify for generic listing, one of the following must generally be true:
- The asset trades on a market that is a member of the Intermarket Surveillance Group (ISG); or
- There is a futures contract on that asset traded for at least six months on a CFTC-regulated designated contract market, with adequate surveillance sharing; or
- There is already an ETF listed on a national exchange with at least 40% of its net asset value (NAV) exposed to that asset.
These criteria are designed to ensure sufficient liquidity, market infrastructure, and surveillance mechanisms—thus balancing speed with risk management.
3. Speeding Up the Approval Process: From 240 to ~75 Days
Previously, each spot crypto ETF or ETP proposal had to undergo the full case-by-case review under Rule 19(b)-4, which could take many months—up to about 240 days or more. Under the generic standard rules, if a product satisfies the eligibility criteria, the timeframe to list and launch is drastically reduced, in many cases to about 75 days. This is a dramatic acceleration.
4. In-Kind Creations and Redemptions: Aligning with Commodity Norms
Another key recent change is that the SEC has permitted in-kind creation & redemption of shares for crypto ETPs, especially Bitcoin and Ethereum based ones. Previously, many such products were limited to cash-only creations or redemptions, which creates inefficiencies (selling or buying crypto in open markets to match flows). With in-kind, there is less friction, possibly lower costs, and potentially better tax/resource efficiency.
5. Which Cryptos May Qualify Soon / Be Listed
Based on current market data and the eligibility criteria, many of the altcoins already awaiting approval or being proposed might now have a clearer, more realistic path. These include:
- Solana (SOL)
- XRP
- Dogecoin (DOGE)
- Litecoin (LTC)
- Avalanche (AVAX)
- Chainlink (LINK)
- Also potentially Polkadot (DOT), Cardano (ADA), Bitcoin Cash (BCH), etc.
However, not all will qualify immediately—some will need to wait until futures markets have traded for six months, or until markets join ISG or surveillance agreements are in place.
6. Benefits vs Risks: What to Watch Out For
Benefits:
- Lower cost and higher speed of launching new crypto ETFs/ETPs.
- Broader access for investors to diversified crypto exposure via regulated vehicles.
- Improved efficiency with in-kind mechanisms.
- Encourages institutional and traditional asset manager involvement.
Risks and Concerns:
- Some products may have weak fundamentals or low liquidity—just because a product can trade doesn’t mean it should in large volume.
- Surveillance and market manipulation remain concerns, especially for smaller or less established tokens.
- Investor protection: ensuring disclosure, custody, volatility risk, and other regulatory guardrails are sufficient.
- Oversupply or “ETP fatigue”—too many funds chasing too little real demand could dilute returns.
Recent Developments and Market Behavior
- Bitwise CIO Matt Hougan and others have predicted that with the generic listing standards in place (potentially as soon as October 2025), there could be a surge of new crypto ETP filings and product launches. The
- Indeed, filings have begun flooding in: products based on Avalanche, Sui, Bonk, Litecoin, etc., are being proposed.
- From the investor side, Ethereum-based ETPs have recently had strong inflows, indicating rising institutional interest beyond just Bitcoin. For instance, in August, as some reports note, Ethereum ETFs have drawn in “around $4 billion in institutional inflows” while Bitcoin ETFs saw net outflows.
- Regulatory guidance is also evolving: beyond generic listing standards, the SEC released guidance on crypto ETP disclosures (custody, risk, etc.), and has approved the structural mechanism changes (in-kind).
Overall Implications
This shift from individual, unpredictable, and time-consuming approval processes to a rules-based generic listing regime is a major regulatory inflection point for crypto ETFs/ETPs in the U.S. It signals that regulators are increasingly open to bringing altcoin products into regulated, mainstream financial markets—not just Bitcoin and Ethereum.
For practitioners, blockchain projects, token developers, fund managers, and investors, this means:
- Projects that meet the eligibility criteria could expect more financial products tied to their tokens (e.g. ETFs), increasing exposure, liquidity, and legitimacy.
- It may become easier to plan product launches, tokenomics, or partnerships, knowing there is clearer regulatory pathway.
- Investors may gain more diversified, regulated crypto exposure, though must still perform due diligence on the underlying tokens’ fundamentals.
Conclusion
The SEC’s approval of generic listing standards for commodity-based (including crypto asset-based) trust shares represents a watershed moment in crypto regulation. By reducing friction, time, and uncertainty in the ETF/ETP listing process, these changes pave the way for a broader set of assets—especially major altcoins—to become accessible via regulated, exchange-traded products. While the benefits are substantial (lower costs, faster launches, broader market access), the risks of overextension, investor harm, and manipulation remain. For anyone scouting new crypto assets or looking for next sources of yield or innovation, the new framework offers both opportunity and new benchmarks: which tokens can satisfy the eligibility criteria, how robust their markets are, how well surveillance works, and whether investor demand supports more offerings.
