U.S. Securities and Exchange Commission (SEC) is brewing a major change that could fundamentally alter cryptocurrency exchange-traded funds (ETF) the listing approval process.

According to independent journalist Eleanor Terrett, the SEC is in the early stages of developing a set of universal listing standards for crypto ETFs, aimed at significantly speeding up the approval process for such funds. If this initiative is implemented, it indicates that after the Bitcoin and Ethereum spot ETFs, more mainstream digital asset ETF products are expected to see a “point shaving” situation.

Fast track: from 240 days to 75 days

Currently, the approval process for cryptocurrency ETFs follows a cumbersome and time-consuming procedure: exchanges must submit a Form 19b-4, which often triggers a review period of up to 240 days. However, according to sources cited by The Block, the SEC is discussing a new framework that would significantly shorten this approval time, potentially simplifying the process to just 75 days.

According to sources, this initiative is primarily driven by major exchanges, aiming to align the approval process for crypto ETFs with that of traditional ETFs.

“This is actually an initiative put forward by the exchange to the SEC, where they stated: ‘We hope you can approve the listing standards we proposed,’” said sources. “This way, every time we have a new crypto ETP (exchange-traded product), as long as it meets these standards, we won’t have to seek approval from the SEC anymore. We can approve it ourselves.”

New standard considerations: market capitalization, decentralization, and token distribution

The proposed universal listing standards currently under discussion may cover a range of key indicators, including: the total market capitalization of digital assets, the degree of decentralization, and the distribution of wallets, among others. The SEC has also participated in these discussions to ensure that any standards ultimately approved can effectively protect investors and promote market efficiency.

In addition, according to the new guidelines released on July 1, issuers must detail in their disclosures: custody arrangements, risk factors, and operational challenges in the cryptocurrency market. The SEC emphasized that comprehensive risk disclosures must cover price volatility, cybersecurity threats, network attacks, fraud risks, and competition from other products.

An SEC insider said: “They (the SEC) are actively communicating with exchanges… They just want to ensure that any standards ultimately approved will protect investors and facilitate an efficient market.”

Despite the excitement surrounding this potential framework, ETF issuer 21Shares stated that they have not yet directly engaged in conversations with the SEC regarding the “proposed tokenized ETF general listing standards.” However, 21Shares has already submitted a tracking product for Solana (SOL) and XRP ETF proposal.

21Shares stated: “If such a framework is implemented, it will significantly reduce the complexity and uncertainty of the current listing process, eliminating much of the speculation and ambiguity inherent in the existing 19b-4 approval process.”

In addition, the Trump Media & Technology Group (operator of Truth Social) has filed documents with the SEC to launch a product called “Crypto Blue Chip ETF.” The fund plans to primarily invest in Bitcoin (70%), Ethereum (15%), SOL (8%), XRP (5%), and CRO (2%).

This move not only marks the direct entry of a large publicly listed company but also reflects the political trends behind it, as Trump is pushing for a more crypto-friendly regulatory environment.

Analysts predict: the “deluge” will arrive as early as September.

Bloomberg ETF analyst James Seyffart stated during Tuesday’s WOLF Trading X Spaces that he expects the draft of the framework to be published as early as this month, with implementation anticipated in September or October. Seyffart confidently said, “At that time, we will see the ‘flood’ of these other assets flowing into the market, which is exactly what I am looking forward to.”

He and Bloomberg senior ETF analyst Eric Balchunas recently predicted that the probability of SEC approval for the ETFs of SOL, XRP, and Litecoin is as high as 95%. At the same time, the approval chances for crypto ETF proposals such as Dogecoin, Cardano, and Polkadot are also high, at about 90%.

This means that once the new listing standard framework takes effect, the market landscape for cryptocurrency ETFs will rapidly expand, covering more mainstream altcoins beyond Bitcoin and Ethereum, providing investors with a broader range of digital asset investment channels.

Although issuers like 21Shares have stated that they have not directly participated in discussions about the universal listing standards, it is generally believed that once the new framework is implemented, it will greatly reduce the complexity and uncertainty of listing crypto ETFs. With the clarification of regulations and the continuous emergence of new products, 2025 is expected to be the “breakout year” for crypto ETFs to truly enter the mainstream.

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