Which Altcoins Stand to Gain from the SEC’s New ETF Listing Standards?
On Wednesday, the US SEC (Securities and Exchange Commission) 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 path for a number of digital asset ETFs to enter the market in the coming weeks.
Grayscale’s Multi-Crypto Milestone
Grayscale secured a first-mover benefit as its Digital Large Cap Fund (GDLC) acquired approval beneath the new listing standards. Products that will likely be traded beneath the ticker GDLC embody Bitcoin, Ethereum, XRP, Solana, and Cardano.
“Grayscale Digital Large Cap Fund $GDLC was simply authorized for buying and selling together with the Generic Listing Standards. 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 reasonably than single-asset ETFs.
Bloomberg’s Eric Balchunas explained that round 12–15 cryptocurrencies now qualify for spot ETF consideration.
However, 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 in the Spotlight Amid New Era of ETF Eligibility
Several property have already met the key situation, regulated futures trading on Coinbase. For instance, Solana futures launched in February 2024, making the token eligible as of August 19.
“The SEC authorized generic ETF itemizing requirements. Assets 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,” SolanaGround indicated.
Crypto traders and communities additionally recognized which tokens stand to acquire. Chainlink neighborhood liaison Zach Rynes highlighted that LINK could soon see its own ETF. He famous that each Bitwise and Grayscale have already filed functions.
Meanwhile, the Litecoin Foundation indicated that the new requirements present the regulatory framework for LTC to be listed on US exchanges.
Hedera can be in the highlight, with digital asset investor Mark anticipating an HBAR ETF. Market observers see the determination as a possible turning level for broader adoption, bringing the much-needed readability and accessibility for traders.
At the identical time, it boosts confidence in the market’s maturity.
The common sentiment is that with the SEC’s approval, the subsequent section of crypto ETFs is now not a query of ‘if,’ however ‘when.’
The shift to generic itemizing requirements might develop the US-listed digital asset ETFs roster past Bitcoin and Ethereum. Such a transfer would usher in new funding autos overlaying a dozen or extra altcoins.
This represents the clearest path but towards mainstream, regulated entry to diversified crypto publicity. More 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.
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