SEC Approves New Rule That Could Fast-Track XRP, SHIB, HBAR ETFs

• The SEC approved universal listing standards that streamline spot crypto ETF launches in U.S. markets.
• XRP and Dogecoin ETFs are debuting today as the first altcoin-focused spot ETFs in the country.

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The US Securities and Exchange Commission (SEC) has proposed a new framework allowing exchanges to list exchange-traded products (ETPs) that hold spot commodities, including cryptocurrencies, without needing case-by-case agency approval.

The approval eliminates the costly filing process for 19(b) rules, which previously took as long as 240 days. Rather, exchanges such as Nasdaq, NYSE, and Cboe can now proceed with listings if issuers comply with generic listing criteria. Under the amended regulations, ETF issuers will introduce products directly with exchanges, and listings will proceed without direct oversight by the SEC, provided the listing terms are met.

SEC Chairman Paul Atkins said the decision removes hurdles for investors to enter regulated digital asset markets. He stressed the move strengthens U.S. capital markets by keeping innovation within trusted financial systems. He noted,

SEC Commissioner Hester M. Peirce also released a separate statement affirming the use of common listing standards for commodity-based ETPs. She clarified that the new rules would be applicable to ETPs that hold crypto-asset underlying commodities and other commodities. The mandate to individually approve under section 19(b) of the Securities Exchange Act of 1934 is eliminated.

Broader Access to Crypto Derivatives

In addition to the new listing standards, the SEC gave the go-ahead to launch options based on the Cboe Bitcoin U.S. ETF Index and its mini version. These approvals increase the number of regulated crypto-linked derivatives available to investors in the United States.

Market analysts have called the shift a breakthrough for the sector. Bloomberg’s ETF analyst Eric Balchunas described the decision as an overdue crypto ETP framework. James Seyffart of Bloomberg Intelligence said more spot ETP launches should be available in the coming months.

The framework also means that any crypto asset with a futures contract traded for at least six months on a regulated exchange, such as Coinbase, will be eligible for a spot ETF. In addition to Bitcoin and Ethereum, there are now 12 other crypto assets trading as futures contracts that have a clearer path to spot ETF listings.

The approval has been well-received by industry leaders. Nova Dius President Nate Geraci congratulated the SEC on the quick adoption of generic listing standards, comparing the current position of the SEC to previous debates about spot Bitcoin ETFs. He noted that only two years ago, the SEC was still litigating against Grayscale over its conversion of Bitcoin to its Bitcoin trust.

Altcoin ETFs Enter U.S. Markets

While the framework provides a foundation for future listings, two high-profile launches have already been announced. The REX-Osprey XRP ETF (XRPR) and the REX-Osprey Dogecoin ETF (DOJE) will launch today.

The XRP fund is the first spot product for the token in the United States. Meanwhile, the Dogecoin ETF is the country’s first regulated meme coin fund. Analysts believe these launches are signs of the start of wider adoption of these assets, with more altcoin ETFs expected to follow.

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