Bitcoin News Today: NYSE Arca Proposes Generic Rule to Fast-Track Crypto ETF Listings

NYSE Arca has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to establish a generic listing rule, Rule 8.201-E(Generic), which would streamline the approval process for cryptocurrency ETFs by eliminating the need for individual SEC reviews for qualifying products [1]. The rule is designed for commodity-based ETFs, including those linked to crypto assets, provided they meet predefined transparency and trading criteria. Specifically, the underlying asset must have a futures contract on a Designated Contract Market for at least six months [1].

Under the framework, eligible ETFs—those holding cryptocurrencies, cash, or securities—could list automatically without individual SEC approvals. The proposal explicitly excludes leveraged and inverse products due to heightened risk concerns. Issuers must maintain continuous disclosure of fund composition and indicative value, with up-to-date prospectus documents publicly accessible [1]. The rule also permits protocol staking for assets like Ethereum (ETH) and Solana (SOL), subject to disclosure requirements and liquidity risk management [1].

Regulatory distinctions may influence which crypto assets qualify for the new framework. Solana, for example, appears well-positioned for early inclusion due to its classification as a commodity and absence of active SEC litigation. In contrast, XRP faces greater uncertainty following the SEC’s conclusion of the Ripple case [1]. NYSE Arca will also implement continuous surveillance of listed products, with trading suspensions or delistings possible in cases of non-compliance or data disruptions [1].

The SEC has 90 days to review the proposal, with a potential decision by late September or October 2025. If approved, qualifying ETFs could launch immediately, offering a clearer regulatory pathway for institutional-grade crypto products [1]. Market participants are advised to monitor Federal Register updates and SEC commentary during the review period for implementation signals [1].

The proposal marks a departure from the SEC’s traditional case-by-case approval model, which previously delayed product launches and limited market diversity. By introducing standardized, objective criteria, the framework could reduce regulatory uncertainty and foster a more transparent, efficient market environment [1]. Nate Geraci of ETF Store has praised the proposal for its potential to standardize ETF listings and reduce regulatory friction [1], while Eric Balchunas of Bloomberg Intelligence anticipates multiple crypto ETF approvals by late 2025 [1]. NYSE Arca and Nasdaq are reportedly preparing similar submissions, indicating growing industry support for a modernized regulatory approach [1].

The potential benefits of the proposal extend beyond the regulatory process. By increasing the availability of crypto ETFs, the framework could enhance market liquidity and broaden access to regulated digital asset products. Institutional investors, in particular, stand to benefit from faster market entry and clearer guidelines, which could accelerate mainstream adoption of crypto assets [1]. The proposal also aligns with the current favorable market environment, as Bitcoin and Ethereum have demonstrated stable trading volumes and price gains, signaling growing investor confidence [1].

Sources:

[1] CBOE Proposes Automatic Bitcoin ETF Listings to Potentially Streamline SEC Approval Process (https://en.coinotag.com/cboe-proposes-automatic-bitcoin-etf-listings-to-potentially-streamline-sec-approval-process/)

[2] SEC To Streamline Crypto ETF Approvals (https://web.ourcryptotalk.com/blog/sec-to-streamline-crypto-etfs)