CBOE Proposes Automatic Listing for Crypto ETFs to Cut Approval Time

The Chicago Board Options Exchange (CBOE) has filed a rule change with the U.S. Securities and Exchange Commission (SEC) that could revolutionize the process for listing cryptocurrency-based exchange-traded funds (ETFs). The proposal aims to streamline the approval and listing mechanisms by introducing an automatic listing process for crypto ETFs that meet specific criteria, effectively bypassing the traditional 19b-4 filing requirement [1]. This move is intended to reduce the regulatory burden and significantly shorten the time it takes for crypto ETFs to reach the market, which has historically exceeded six months [2].

CBOE’s proposal is part of a broader strategy to expand its footprint in the crypto space. Recently, the exchange submitted applications for two innovative products: an Invesco Galaxy Solana ETF and a Canary Capital staked Injective ETF [3]. The staked Injective ETF is particularly notable as it incorporates staking rewards, blending traditional investment structures with decentralized finance (DeFi) practices [4]. These filings suggest that CBOE is not only facilitating access to crypto assets but also exploring new ways to integrate DeFi elements into regulated investment vehicles [5].

The SEC has shown increasing openness to such developments. On July 18, 2025, the commission approved in-kind creation and redemption mechanisms for crypto ETFs, a regulatory shift that could enhance operational efficiency and reduce costs for fund providers [6]. This decision is particularly relevant for pending XRP ETF applications and may serve as a precedent for the approval of other crypto-based ETFs [7]. The approval also signals a growing regulatory comfort with staking activities, which are now being viewed as more aligned with securities law requirements [8].

If the CBOE’s proposal is accepted, it could mark a significant milestone in the integration of crypto assets into the regulated financial system. The automatic listing mechanism could lower barriers to entry for new ETFs, encouraging greater competition and innovation in the space. Furthermore, it may boost investor confidence by providing a clearer, more transparent regulatory pathway for crypto investment products [2]. However, the success of these initiatives will depend on market adoption, particularly among institutional and retail investors seeking diversified exposure to digital assets [9].

CBOE’s efforts reflect a broader industry trend toward legitimizing crypto as a mainstream asset class. By pushing for regulatory clarity and faster market access, the exchange is helping to bridge the gap between traditional and digital finance, potentially setting the stage for a new era of crypto investing [10].

Source:

[1] https://financefeeds.com/cboe-seeks-green-light-to-auto-list-crypto-etfs/

[2] https://en.coin-turk.com/sec-responds-to-cboes-bold-move-as-crypto-etfs-eye-swift-approval/

[3] https://crypto-economy.com/cboe-submits-filing-to-list-canary-capitals-staked-injective-etf/

[4] https://www.hokanews.com/2025/07/cboe-files-for-injective-etf-major-step.html

[5] https://cryptorobotics.ai/news/news-report/staked-altcoin-etfs-cboe/

[6] https://financefeeds.com/sec-approves-in-kind-creations-and-redemptions-for-crypto-etps/

[7] https://coincentral.com/in-kind-etf-approval-by-sec-could-favor-pending-xrp-etf-filings-bill-morgan/

[10] https://dexalot.com/en/blog/solana-etf-integration-institutional-investment