Regulators May Soon Fast-Track a Flood of Altcoin ETFs

Grayscale has filed an S-3 registration statement with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin Cash (BCH) exchange-traded fund (ETF), signaling a significant development in the expanding crypto ETF landscape. The S-3 form is typically used for secondary offerings and suggests Grayscale is seeking to make shares of its Bitcoin Cash product publicly traded on a U.S. exchange. This move comes amid a broader shift in regulatory approaches to crypto products, with several exchanges proposing standardized listing rules that could drastically reduce the time required to approve new crypto ETFs.

Currently, the SEC’s approval process for crypto ETFs can take up to 240 days, but the adoption of generic listing standards could cut this timeline to 60–75 days for qualifying products. These standards, proposed by exchanges such as Nasdaq, NYSE Arca, and Cboe BZX, aim to apply similar rules used for traditional ETFs under SEC Rule 6c-11. If finalized, the new framework would allow eligible crypto ETFs to bypass case-by-case SEC review, provided they meet criteria such as a six-month trading history on CFTC-regulated futures markets.

The potential implementation of these standards would not only streamline approvals but also open the door for a range of altcoin ETFs beyond Bitcoin and Ethereum. Tokens like Solana (SOL), XRP, and others could now be included in new offerings, provided they meet the necessary liquidity and surveillance requirements. This development could fast-track the listing of nearly 100 pending crypto ETF applications and lead to the introduction of new products, including index funds, thematic baskets, and hybrid ETFs combining crypto with traditional assets.

Grayscale’s Bitcoin Cash ETF filing is part of a larger trend where regulated crypto products are increasingly being integrated into mainstream financial markets. The company, which already offers a Bitcoin ETF in a trust structure, has long advocated for expanded crypto investment vehicles. With the SEC already approving in-kind creation and redemption mechanisms for crypto ETFs in August 2025, the infrastructure for more efficient and cost-effective ETF offerings is in place. These mechanisms align with those used in commodity funds, reducing operational friction and enhancing investor accessibility.

The regulatory environment for crypto ETFs continues to evolve. In addition to the proposed listing standards, exchanges like Cboe are introducing new product types to meet growing demand. For instance, Cboe plans to launch continuous futures contracts for Bitcoin and Ether in November 2025, which will allow traders to maintain long-term exposure without the need for frequent contract rollovers. These developments underscore the increasing institutionalization of crypto markets and the role of U.S. exchanges in providing regulated, transparent access to digital assets.

The timeline for finalizing the SEC’s new listing rules remains uncertain, though a decision could be expected in September 2025. If adopted, the first wave of altcoin ETFs, including those based on Bitcoin Cash, could see market entry by the end of the year. This would represent a major milestone in the maturation of the crypto ETF sector and could reshape investor behavior by offering regulated, liquid, and transparent exposure to a broader range of digital assets.