Bitcoin: Is it now happening in quick succession?

The U.S. Securities and Exchange Commission (SEC) has approved new listing standards for crypto ETFs in an expedited procedure. This should open the door to a whole wave of new products based on altcoins such as Solana, XRP, and Dogecoin. For investors, this will soon mean more choice and easier access to the crypto market.

On Wednesday, the U.S. Securities and Exchange Commission (SEC) surprisingly approved new listing standards for crypto ETFs under an "expedited procedure." The agency justified the move with "compelling reasons" that warrant immediate approval. Previously, major exchange operators such as Nasdaq, NYSE Arca, and Cboe BZX had requested a rule change to standardize and accelerate the listing of "commodity-based trust shares"—commodity-based fund shares that include crypto assets.

Turbo for new crypto ETFs

What sounds technical in practice is a revolution: Until now, every single crypto ETF had to go through a lengthy application process (the so-called 19b-4 form), which could take up to 240 days. The new, generic listing standards will significantly shorten this process. Products that meet the new criteria can be listed on the stock exchange much more quickly and with less bureaucracy in the future.

Dozens of fund providers are already lined up to launch ETFs on popular cryptocurrencies like Solana, XRP, or even the meme coin Dogecoin. The SEC's latest move could give these plans a huge boost.

“Market is completely turned upside down”

"This step is a milestone for the acceptance of digital assets," commented one market observer. "It maximizes investor choice and promotes innovation by lowering the barriers to access to crypto products within established capital markets."

Matt Hougan, Chief Investment Officer at crypto asset manager Bitwise, had already written in a note prior to the decision that the new standards could “completely turn the market on its head.”

Green light also for Grayscale

In keeping with this, the SEC also gave the green light for the listing of the Grayscale Digital Large Cap Fund on the same day. The agency had previously blocked the fund's conversion. The fund, which was previously only tradable over-the-counter for qualified investors, consists primarily of Bitcoin (almost 80 percent) and Ethereum (around 11 percent). Smaller holdings are also held in Solana, Cardano, and XRP.

With the simplified approval process, nothing stands in the way of a flood of new, regulated investment products. This should give a massive boost not only to Bitcoin, but especially to leading altcoins such as Solana, XRP, and others, as fresh capital is poured into the market. Investors will therefore remain on board with Bitcoin.

Note on conflicts of interest The board member and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly entered into positions in the following financial instruments or derivatives related to them mentioned in the publication, which could benefit from any price development resulting from the publication: Bitcoin.

Gerd Weger has been successfully active in the markets since the 1980s and is known to many stock market participants as a columnist for €uro am Sonntag and as the operator of his legendary "Millionaire Depot." In 2017, he shifted his focus from stocks to cryptocurrencies and has now published a standard work: The focus is on the valuation factors of Bitcoin and other cryptocurrencies. The book systematically presents fundamental analysis approaches that are completely different from those used for stocks. Also important are considerations for tax optimization. For informed investors and traders, all of this is essential for sustainable investment success with cryptocurrencies.