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The U.S. Securities and Exchange Commission (SEC) has introduced new standards for cryptocurrency exchange-traded products (ETPs), setting a key regulatory precedent for the industry [1]. The updated guidelines establish a listing standard, allowing tokens listed on major platforms like Coinbase with at least six months of active futures trading to qualify for ETF approval [1]. Analysts suggest that approximately a dozen mainstream cryptocurrencies meet this criterion, with a high likelihood—over 85%—of approval by late 2025 [1]. The primary uncertainty now is the timing of the SEC’s approvals, with expectations that a wave of ETFs could be cleared between September and October.
The new regulatory clarity aligns cryptocurrency ETFs more closely with traditional structures by permitting in-kind creation and redemption mechanisms [2]. This change is expected to simplify the approval process for asset-backed ETFs and enhance liquidity across the sector [3]. For example, spot Bitcoin and Ether ETFs are now more comparable to conventional ETFs, potentially encouraging broader market participation. The SEC’s decision may also benefit other crypto assets, including Ethereum and Bitcoin, by making ETF approval more feasible.
A futures-linked asset tied to Coinbase is widely regarded as a strong candidate to be the first to meet the SEC’s new criteria [1]. The potential resolution of the SEC’s long-running legal dispute with Coinbase has already influenced market sentiment, contributing to volatility in Coinbase-related equities [4]. The firm’s position in the crypto derivatives market gives it a strategic advantage in the regulatory landscape, particularly as it continues to meet the SEC’s evolving requirements.
The SEC’s rule changes are expected to influence the approval trajectory of other crypto-related ETFs as well. For instance, proposed XRP ETFs could benefit from the newly permitted in-kind mechanism, potentially expediting their regulatory pathway [5]. However, the agency has also demonstrated caution, as seen in its recent decision to delay the approval of the Truth Social Bitcoin ETF, highlighting the nuanced approach being taken toward crypto financial products [6].
Public sentiment on crypto remains mixed, with recent polling data showing significant wariness among U.S. investors [7]. Nonetheless, the SEC’s regulatory updates are seen as a step toward a more structured and investor-friendly market, potentially narrowing
between regulatory caution and growing institutional interest. The changes suggest a more predictable environment for future ETF applications and could encourage broader adoption of crypto-based investment vehicles.Sources:
[1] Mitrade. [https://www.mitrade.com/au/insights/news/live-news/article-3-999429-20250731](https://www.mitrade.com/au/insights/news/live-news/article-3-999429-20250731)
[2] CoinDesk. [https://www.coindesk.com/markets/2025/07/30/in-kind-bitcoin-and-ether-etfs-how-they-will-reshape-the-crypto-market](https://www.coindesk.com/markets/2025/07/30/in-kind-bitcoin-and-ether-etfs-how-they-will-reshape-the-crypto-market)
[3] CoinCentral. [https://coincentral.com/cboe-pushes-for-crypto-etf-revolution-with-sec-rule-change-proposal/](https://coincentral.com/cboe-pushes-for-crypto-etf-revolution-with-sec-rule-change-proposal/)
[4] Investor’s. [https://www.investors.com/research/coinbase-stock-buy-now-july-2025/](https://www.investors.com/research/coinbase-stock-buy-now-july-2025/)
[5] CoinCentral. [https://coincentral.com/in-kind-etf-approval-by-sec-could-favor-pending-xrp-etf-filings-bill-morgan/](https://coincentral.com/in-kind-etf-approval-by-sec-could-favor-pending-xrp-etf-filings-bill-morgan/)
[6] Bitcoinist.com. [https://bitcoinist.com/sec-delays-truth-social-bitcoin-etf-decision-new-deadline-sparks-crypto-startup-buzz/](https://bitcoinist.com/sec-delays-truth-social-bitcoin-etf-decision-new-deadline-sparks-crypto-startup-buzz/)
[7] CoinGeek. [https://coingeek.com/americans-fear-crypto-risks-cfpb-takes-crypto-side/](https://coingeek.com/americans-fear-crypto-risks-cfpb-takes-crypto-side/)
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