Regulators' Framework Shift Could Unlock Crypto's Next Big ETF Boom

Dogecoin and XRP spot ETFs have witnessed record first-hour trading volumes as the U.S. Securities and Exchange Commission (SEC) announces new listing standards for crypto ETFs, marking a pivotal moment in the digital asset market. The regulatory developments have spurred increased interest in XRP, DOGE, and other cryptocurrencies, with potential listings of ETFs expected to drive institutional adoption and broader market participation.

The approval of the SEC’s new general listing standards significantly streamlines the process for approving crypto ETFs. Previously, each ETF required a 240-day review under SEC Rule 19b-4. Now, exchanges such as Cboe, Nasdaq, and NYSE can list and trade Commodity-Based Trust Shares under a standardized framework if the products meet predefined criteria, effectively accelerating the approval timeline. This move mirrors the approach taken for traditional ETFs in 2019 and is expected to catalyze a surge in new crypto ETF offerings. Analysts project that over 100 new crypto ETFs could be launched within the next 12 months.

XRP, the native token of Ripple, has emerged as a focal point in the ETF approval process. The resolution of the SEC vs Ripple lawsuit has provided clarity regarding XRP’s regulatory status, with courts affirming that XRP is not a security in secondary market transactions. This decision has elevated investor confidence, with 11 issuers, including Bitwise, Grayscale, and 21Shares, submitting applications for XRP spot ETFs. Deadlines for decisions range from October 18 to November 14, with market participants closely monitoring the outcomes. The REX-Osprey XRP ETF, the first such product in the U.S., launched on September 18, offering a hybrid model that includes direct holdings of XRP and exposure to derivatives.

The market response to these developments has been swift. XRP’s price surged by 1.53% on September 17, closing at $3.0838, surpassing the broader market’s 0.73% gain. With key resistance levels at $3.2 and $3.335, traders are optimistic about further gains if bullish momentum continues. Meanwhile, SHIB and HBAR also saw notable price increases, reflecting the broader market’s enthusiasm for crypto ETF prospects.

The potential approval of XRP and DOGE ETFs could bring substantial institutional investment into the market. These ETFs would provide traditional investors with exposure to these cryptocurrencies without the need to directly hold the assets, potentially enhancing liquidity and stability. The success of Bitcoin and Ethereum ETFs earlier this year has set a precedent, with market participants expecting similar dynamics for XRP and DOGE. Bloomberg analyst Eric Balchunas estimates a 65% chance of XRP ETF approval, with the probability potentially increasing under the new SEC leadership.

The regulatory environment has also evolved with the passage of the U.S. GENIUS Act, which aligns closely with the EU’s MiCA framework. Both regulations aim to bring stability to the crypto market by imposing strict reserve requirements, transparency standards, and consumer protections. The GENIUS Act, however, introduces additional safeguards, such as the prohibition of longer maturity bonds in stablecoin reserves and the requirement for banks to operate payment stablecoins through separate entities. These measures are designed to mitigate systemic risks and ensure the integrity of the financial system.

As the crypto market continues to mature, the approval of new ETFs represents a critical step toward mainstream adoption. The streamlined regulatory process and increased institutional interest are expected to drive further innovation and investment, reshaping the landscape of digital assets. With XRP and DOGE leading the charge, the coming months will be pivotal in determining the trajectory of these emerging financial instruments.