Regulators Could Soon Fast-Track a Crypto ETF Revolution

The U.S. Securities and Exchange Commission (SEC) is preparing a significant shift in the regulatory landscape for cryptocurrency exchange-traded funds (ETFs) by considering the adoption of generic listing standards, a move that could dramatically reduce approval times and unlock opportunities for a broader range of digital assets to enter the mainstream financial market. These proposed standards, put forward by exchanges such as Nasdaq, NYSE Arca, and Cboe BZX, would align crypto ETFs with traditional ETFs under Rule 6c-11, streamlining the listing process and enabling faster product launches. This shift is particularly relevant for altcoin ETFs, which are currently constrained by a lengthy, individualized approval process that often takes 240 days or longer.

Currently, only Bitcoin and Ethereum ETFs have secured regulatory approval. However, with the proposed generic listing standards, the SEC could open the door to ETFs for tokens such as Solana (SOL), XRP (XRP), Dogecoin (DOGE), and potentially even more innovative structures, including staking-linked products or thematic baskets. The criteria for eligibility under the new framework would require a minimum six months of trading history on CFTC-regulated futures markets, ensuring that only sufficiently mature tokens are included, while still expanding investor options.

The potential for a broader array of crypto ETFs is already being pursued by major asset managers. Grayscale, for instance, has filed for a spot Chainlink (LINK) ETF, aiming to convert its existing Chainlink Trust into an ETF that would trade under the ticker GLNK. This move is part of a broader strategy to extend its product offerings beyond Bitcoin and Ethereum to include a range of altcoins such as Avalanche (AVAX), Dogecoin (DOGE), Litecoin (LTC), and Solana (SOL). The company’s recent filings indicate a growing demand for diversified exposure to altcoins, particularly among institutional investors seeking to access the infrastructure of decentralized finance and blockchain ecosystems.

Bloomberg analyst James Seyffart has noted that while altcoin ETFs are likely to see approval for a set of approximately ten assets—including Dogecoin, Chainlink, and Bitcoin Cash—expectations for demand should be tempered. He highlighted that institutional investors are more inclined toward basket products containing multiple cryptocurrencies rather than individual altcoin ETFs. Seyffart also pointed to the performance of digital asset treasury companies (DATCOs), which have generated significant returns in this cycle, even as individual altcoins have remained relatively subdued. This trend underscores a structural shift in investor behavior, with capital increasingly flowing into financial engineering strategies that provide leveraged exposure to cryptocurrencies through traditional equity markets.

The SEC has already taken steps toward normalizing crypto ETFs, approving in-kind creation and redemption mechanisms in August 2025, which lowers operational costs and aligns crypto ETFs with commodity fund norms. However, recent delays in approving multiple applications suggest that the commission is still working toward a broader policy framework. Analysts speculate that the SEC is taking a strategic pause to finalize rules that could shape the next wave of digital asset ETFs. These delays affect products linked to Bitcoin, Ethereum, XRP, and Litecoin, with final decisions expected by October 2025.

If the SEC moves forward with the proposed generic listing standards, it could mark a turning point in the integration of digital assets into the U.S. capital markets. This shift would not only reduce regulatory uncertainty but also position the U.S. as a global leader in crypto innovation, following the success of the 2019 Rule 6c-11 for traditional ETFs. The outcome of the SEC’s decision in September 2025 will be critical in determining whether the U.S. maintains its edge in the rapidly evolving digital asset landscape.