encryption ETF explosion

Author: Martin

A regulatory transformation that will impact the future of the cryptocurrency market has quietly landed. On September 17, the U.S. Securities and Exchange Commission (SEC) passed the "General Listing Standards for Commodity Trust Shares." This seemingly technical rule change has opened the floodgates for the mass listing of cryptocurrency ETFs.

This new regulation shortens the approval time for cryptocurrency ETFs from a maximum of 270 days to within 75 days, marking a shift in the SEC's attitude towards cryptocurrency assets from "whether to allow" to "how to regulate."

The system gate is open, and the SEC's new regulations change the rules of the crypto ETF game.

In the past, cryptocurrency spot ETFs had to go through a long and uncertain case-by-case approval process, with each application needing to pass both the 19b-4 rule change approval and the S-1 prospectus approval, taking up to 240 days or even longer.

The new regulations have completely changed this approval logic. Now, as long as the token meets specific standards, the issuer no longer needs to go through the lengthy 19b-4 approval process and only needs to submit the S-1 document, waiting for 75 days.

The selection criteria under discussion include indicators such as market capitalization, degree of decentralization, and wallet distribution, but the most feasible path is: the asset has continuous trading records on CFTC-regulated futures exchanges for more than 6 months.

This change means that the SEC is shifting from a case-by-case approver to a rule maker, marking a key step forward in the regulation of cryptocurrency assets in the United States.

October major exam, multiple counterfeit coin ETFs welcome ultimate decision

After the system gate opens, the market immediately feels the change, and October will become the "month of major tests" for altcoin ETFs, with at least 16 spot cryptocurrency ETFs awaiting the SEC's final decision.

These applications involve various tokens beyond Bitcoin and Ethereum, including SOL, XRP, LTC, DOGE, ADA, and HBAR.

Specifically, the deadline for Canary's LTC ETF is October 2; Grayscale's conversion of Solana and LTC trusts is on October 10; WisdomTree's XRP fund will have its final ruling on October 24.

The market has very high expectations for this batch of ETF approvals. Bloomberg ETF analyst Eric Balchunas stated: "The success rate of the SOL spot ETF approval is now close to 100%. The general listing standards have rendered the 19b-4 filings and their timelines meaningless."

The market landscape has undergone a dramatic change, from a duel between two giants to a hundred flowers blooming.

The success of Bitcoin and Ethereum ETFs has proven that there is a real demand from institutions for crypto assets. In just one year, the Bitcoin spot ETF has managed assets exceeding $110 billion, making it the most successful ETF launch in history.

The mass listing of altcoin ETFs will change the entire landscape of the cryptocurrency market. As of September 2025, the cryptocurrency ETF market has formed a three-tiered structure: the first tier consists of mature Bitcoin and Ethereum spot ETFs; the second tier includes SOL, the newly emerging XRP, and Dogecoin ETFs; while the third tier consists of ADA, DOT, and other ETFs that are currently in the queue.

Grayscale's multi-asset ETF (GDLC), as the first compliant ETF covering five major assets, pushes cryptocurrency from "individual coin speculation" into the era of index-based allocation. It tracks the CoinDesk 5 index, covering over 90% of the cryptocurrency market capitalization, effectively providing investors with a "crypto version of the S&P 500."

Why are ETFs so important for cryptocurrencies?

ETFs are not only a trading channel, but also a triple upgrade of identity verification + capital engine + ecological leverage.

Compliance identity verification transforms cryptocurrencies from a "gray area" into regulated public trading assets. Traditional institutions such as pension funds and insurance companies, which were previously unable to directly hold tokens due to compliance restrictions, can now allocate them through compliant ETFs.

ETFs also bring stable buying pressure to the underlying assets, as issuers need to buy the corresponding cryptocurrencies in the spot market in real-time based on the subscription status of the fund shares, creating continuous demand support.

A new order in the crypto world is quietly being reshaped between the exchange's code and the SEC's approvals. This transformation will bring new opportunities for investors, while also requiring us to view risks and returns more rationally.