In a watershed moment for U.S. crypto regulation, the Securities and Exchange Commission (SEC) has approved new generic listing standards that significantly ease how commodity-based exchange-traded products (ETPs) — including spot crypto ETFs — can be listed on major U.S. exchanges such as Nasdaq, NYSE Arca, and Cboe. Under the new approach, issuers of crypto ETFs that satisfy certain criteria can bypass individual SEC review under Section 19(b), a major barrier under prior rules.
The change opens the door to a flurry of new ETF proposals beyond Bitcoin and Ethereum — potentially including Solana, XRP, Cardano, Dogecoin, and others. But with opportunity comes risk — and the implementation details and investor protections will be under intense scrutiny.
Up until now, a proposed crypto ETF had to navigate a dual-filing, case-by-case process. First, an exchange (e.g. Nasdaq, Cboe) needed to propose a rule change to list the product; second, the fund manager had to gain SEC approval independently. Each filing would trigger comment periods, SEC staff reviews, and possible delays or rejections.In practice, this meant that only Bitcoin and Ethereum spot ETFs had cleared the regulatory hurdle (as of 2024), and only after protracted legal and regulatory battles.
Processing times could stretch to 240–270 days or longer. And many issuers faced repeated delays, redesigns, or outright rejection, making it costly and risky to pursue new token-based funds.
With the SEC’s September 18, 2025 ruling, three national securities exchanges may adopt generic listing standards for commodity-based trust shares (which include crypto ETPs) so long as those funds meet eligibility criteria. When a fund satisfies those standards, the exchange may list it without submitting an entirely new rule to the SEC under 19(b). In essence, the SEC “passes the buck” to exchanges, trusting them to police compliance, so long as the generic framework is respected.
Because of this, the listing timeline for eligible crypto ETFs could shrink dramatically — from many months down to in some cases. The SEC also approved, under that same generic pathway, the listing of the Grayscale Digital Large Cap Fund, a multi-asset crypto fund tied to the CoinDesk 5 index (BTC, ETH, XRP, SOL, ADA) under the new standard.
In approving the change, SEC Chair Paul Atkins said the move “maximizes investor choice and fosters innovation by streamlining the listing process and reducing barriers to access digital-asset products.”
With the generic path available, issuers are already racing to file for ETFs pegged to altcoins beyond BTC and ETH. Solana, XRP, Cardano, and Dogecoin are commonly cited among those that now qualify under rules governing regulated futures markets or existing derivative frameworks. Hashdex’s Nasdaq Crypto Index US ETF (NCIQ) is among the first funds to be approved to include XRP, SOL, and XLM along with Bitcoin and Ethereum under the generic standard.
This shifts the narrative: instead of “Bitcoin ETF market,” we may soon talk about “multi-crypto ETFs” or thematic baskets (e.g. Layer-1, DeFi, memecoin, Web3). As issuers experiment with novel structures, the toolkit for exposure to digital assets in familiar securities wrappers will expand.
By reducing the regulatory friction, issuers can launch new funds more quickly and at lower legal and operational costs. This could spur competition, greater product variety, and potentially narrower fees. The comparison is instructive: when generic listing rules were introduced for traditional ETFs (under Rule 6c-11, etc.), the number of ETF launches jumped.
For institutions — pension funds, endowments, wealth managers — regulated crypto ETF vehicles reduce custody, compliance, and operational headaches. Having altcoins in a regulated wrapper may encourage flows into previously underexposed assets. For retail investors, ETF access is simpler than self-custody, opening doors to broader portfolios via brokerage accounts.
In theory, capital inflows via ETFs could bid up demand for the underlying tokens. Particularly for mid-cap or less liquid assets, that dynamic could amplify volatility. At the same time, greater institutional involvement may reduce spreads, increase liquidity, and tighten arbitrage between token markets and ETF markets.
Despite the fanfare, several pitfalls and open questions remain.
The generic standard isn’t a free pass. To qualify, a token must meet at least one of three key criteria (as codified in the order):
- It trades on a regulated spot market (e.g. a U.S. or regulated foreign exchange).
- It has CFTC-regulated futures contracts trading for at least six months.
- Or an ETF already exists with at least 40% of its assets physically invested in that token (rather than derivatives or swaps).
Thus, many speculative or nascent tokens will still be shut out until their markets mature.
With the SEC stepping back, exchanges must now police compliance. But exchanges have varying capacities and incentives — there is risk of lax enforcement or uneven standards. Commissioner Caroline Crenshaw, in a speech, warned that shortcuts in oversight for nascent crypto ETPs could lead to unintended harm.
Spot crypto markets remain volatile, fragmented, and occasionally opaque. Concerns persist around manipulation, custody risk, liquidity crunches, and “black swan” events. Critics argue that generic standards may lead to a proliferation of ETFs with weak tokens or thin markets, exposing retail investors to hidden dangers.
Each issuer must still solve practical issues: selecting custodians, securing auditor support, managing network forks or token delistings, handling tax reporting, and establishing sufficient market surveillance and arbitrage mechanisms. Also, the SEC’s new rules don’t override state or other regulatory regimes that might affect these products.
With issuance barriers lowered, many similar crypto ETFs may emerge, leading to duplication, fee compression, and competition for flows. Some funds may underperform token HODL strategies or trade at wide discounts/premiums if arbitrage or liquidity fails.
Some early signs hint at what’s to come:
- Hashdex Nasdaq Crypto Index US ETF (NCIQ) has already been cleared by the SEC to include XRP, SOL, and XLM via the generic listing route.
- Grayscale’s Ethereum Trust and Mini Trust were approved to transition into the generic listing framework, easing future conversions and launches of ETH-based funds.
- Media reports suggest asset managers have submitted a wave of filings, expecting the first new altcoin ETFs to debut in October 2025.
- Bloomberg, Reuters, and other outlets anticipate that the approval backlog could turn into a deluge of cryptocurrency ETF products in Q4 2025.
The market response has been positive: crypto equities and digital asset platforms have rallied modestly amid optimism over increased institutional flows. Still, adoption will depend on execution and investor reception.
What to Watch in the Coming Months
- Launch Timeline & Tick-Offs
Which ETFs get approved first? Will Solana, XRP, or Cardano lead, or will niche baskets (DeFi, Layer-1, memecoin) emerge? - Premiums / Discounts
Watch how new ETFs trade relative to NAV. Arbitrage mechanism effectiveness will test market efficiency. - Flows & AUM Growth
The speed and size of capital flowing into newly listed ETFs will signal real demand versus speculative hype. - Custody & Security Breaches
As fund assets grow, custodial failures or exploits could become focal risks. - Regulatory Pushback or Clarifications
Whether the SEC or Congress reopens debates around crypto classification, investor safeguards, auditing standards, or listing revocations. - Token Market Effects
How ETF demand influences the moats between token markets and ETF arbitrage, and whether smaller-cap tokens see outsized volatility.
The SEC’s approval of generic listing standards marks one of the most consequential regulatory pivots in U.S. crypto history. What was once an overregulated, brittle regime is now being replaced by a more scalable, rules-based ecosystem — one that could usher in a new generation of spot crypto ETFs spanning a broader universe of tokens.
However, execution matters. The devil lies in the details: custody, surveillance, token eligibility, investor protection, and product differentiation. If the industry can navigate the pitfalls, we may soon see crypto ETF offerings as routine as equity or bond ETFs. If not, some experiments will fail, and markets (and regulators) will adjust.
In short: the floodgates are open. The next several months will be critical in distinguishing pioneers from pretenders — and determining whether crypto ETFs become a mature pillar of institutional capital allocation.