Preparations Underway for the "ETPalooza of Cryptocurrency" in the Business Sector
The United States Securities and Exchange Commission (SEC) has made a landmark decision by approving proposed rule changes to adopt generic listing standards for exchange-traded products (ETPs) that hold spot commodities, including digital assets. This move, which was announced in September 2019, has transformed the stock market and brought crypto into the mainstream.
Matt Hougan, chief investment officer of crypto asset manager Bitwise, described the SEC's adoption of generic listing standards as a 'coming of age' moment for crypto. He expects to see dozens of single-asset crypto ETPs, the rise of index-based crypto ETPs, and many traditional asset managers launching spot crypto ETPs as a result.
The SEC's approval provides regulatory clarity and certainty to the investment community. Jamie Selway, division of trading and markets director at the SEC, stated, 'This approval is a significant step forward in the evolution of our equity market structure, and it will promote competition and innovation.'
Alex Thorn, head of firmwide research at digital asset firm Galaxy, made a similar observation. He stated that the need for a fast-track process for crypto ETPs follows the precedent in traditional equities. Under the new generic listing standards, SEC approval for these ETPs should take less than 75 days.
Eric Balchunas, senior ETF analyst at Bloomberg, and Bryan Armour, director of ETF & passive strategies research at Morningstar, both made positive comments about the approval. Jake Chervinsky, chief legal officer at early-stage crypto fund Variant, also expressed his approval, suggesting that the move signals that crypto has reached the big leagues.
However, Hougan cautions that while this is a significant step, it's just the beginning. He suggests that the SEC's action signals that crypto has reached the big leagues, but it's also just the beginning. 'We're seeing a wave of new products coming to market, and we expect to see continued growth and innovation in the crypto space,' he said.
In a related development, the Brazilian exchange BM&F Bovespa tasked Hashdex and QR Capital with developing and bringing Bitcoin ETPs after the SEC approved general listing conditions for such ETPs in September 2025. This move is expected to further boost the crypto ETP market in the coming years.
