The U.S. Securities and Exchange Commission (SEC) is working on a simplified approval process for cryptocurrency ETFs, according to sources familiar with the matter.
(Source: Eleanor Terrett on X)
SEC Plans Faster Crypto ETF Approval Path
If adopted, the new system would allow exchanges to list token-based ETFs more quickly, as long as the assets meet certain requirements like market size and trading volume.
Instead of the lengthy 19b-4 review, issuers could file a standard S-1 registration and get approval within about 75 days. While the exact criteria remain unclear, the change could reduce paperwork and speed up listings.
The SEC declined to comment on the potential policy shift.
If this happens, the U.S. SEC might soon make it much faster to launch cryptocurrency ETFs. Currently, the approval process is slow and complicated, but a proposed change could shrink the timeline from several months to just 75 days.
Right now, launching a crypto ETF takes 5-8 months because of:
- 19b-4 Filings (45-90 days)- Exchanges must be required to file detailed proposals, and the SEC takes weeks to review them.
- S-1 Registration (typically takes 75 days)- During this process, issuers submit disclosures, but the SEC often asks for multiple rounds of changes.
- Back-and-Forth Delays- In the past, many applications got stuck in revisions. This makes the process lengthy, pushing approvals past more than 200 days.
This buzz comes amid a wave of crypto ETF filings for various cryptocurrencies. Crypto investors could soon get more ETF options beyond Bitcoin and Ethereum. Top analysts at Bloomberg Intelligence now give 95% odds that spot ETFs for XRP, Solana (SOL), and Litecoin (LTC) will get SE approval by late 2025.
The SEC has acknowledged filings for these ETFs, suggesting that they are being treated as commodities (like Bitcoin) rather than securities.
Grayscale’s multi-crypto ETF could get approved by July 2, which will open the door for single-asset funds. The SEC has been in active discussion with issuers, similar to how Bitcoin and Ethereum ETFs got approved.
Which Crypto ETFs are Next?
- Near-Certain (95% Chance): XRP, Solana, Litecoin
- Very Likely (90%): Dogecoin, Cardano, Polkadot, Avalanche
- 50/50: Tron, Pengu
However, the SEC has postponed its decision on many pending crypto ETF applications, extending the review timeline for key filings.
Also Read: Bitget Wallet Partners with Mastercard to Launch No-Fee Crypto Spending Card
