The cryptocurrency domain at the moment is experiencing a wave of innovations and experimentation. The US SEC, chaired by the newly appointed Paul Atkins, is all about promoting crypto innovation, which is the central highlight of the market as of now. That being said, the US SEC has recently brought forth an update, introducing a genetic listing procedure for launching crypto ETPs. This could set a new path for crypto ETFs to follow, one that is extremely smooth and hassle-free to adapt to.
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The US SEC Eases Crypto ETPs Rule
The new Securities and Exchange Commission has now enabled a new crypto ETF criterion. Under this new rule, crypto ETFs can gain approval within 75 days after applying, provided they meet the prescribed criteria established by the US SEC. The regulatory body introduced generic listing standards for ETPs. This development has given new hope for the cryptocurrency domain to explore at present.
Bloomberg ETF analyst James Seyffart said the new changes could open ETF floodgates. 100+ ETFs may dominate the crypto domain in the next 12 months, the expert shared.
“We’re going to get well over a hundred ETFs. Probably, that are going to be involved in the crypto space in the next six to 12 months… So theoretically, you could file an ETF and within the next few months, get a SHIB ETF. James Seyffart, ETF analyst at Bloomberg Intelligence, said on a podcast on Wednesday.
Generic Crypto ETPs: Impact on the Sector
Drawing a compelling new analysis, Matt Hougan, CIO of Bitwise Invest, earlier shared how generic listings in crypto could help bolster the ETF launch domain. This simply means how generic listings are predicted to play a key role in strengthening crypto adoption and its positioning in the financial domain.
“What impact will Generic Listing Standards have on the crypto ETP space? Here’s what happened when the SEC passed the “ETF Rule” in late 2019. Which created Generic Listing Standards for traditional ETFs. The pace of ETF launches rose from ~117/year to ~370/year. Expect the same kind of expansion if Generic Listing Standards come to crypto this fall.
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