The number of cryptocurrency exchange-traded funds (ETFs) available to investors is set to explode now that the U.S. Securities and Exchange Commission (SEC) has relaxed the approval process for the investment vehicles.
Asset managers are scrambling to launch crypto ETFs after the SEC announced looser regulatory requirements and a shorter approval process to bring such investments to market.
The new rules are expected to lead to new ETFs that track the spot prices of cryptocurrencies such as Solana (SOL), XRP (XRP), and Dogecoin (DOGE), among many others.
Currently, there are 21 U.S. ETFs that track the spot price of Bitcoin (BTC) or Ethereum (ETH), the two largest cryptocurrencies.
The first Bitcoin ETF was only approved by the SEC in 2024 and until now the industry has largely focused on tracking the spot prices of either BTC or ETH.
But now, the SEC has adopted new listing standards for crypto ETFs, potentially opening the flood gates on new offerings for investors to choose from.
The new rules eliminate the need for a regulatory review of each crypto ETF application, allowing products that meet predetermined standards to launch without a lengthy approval process.
It is estimated that the approval time for new cryptocurrency products will drop to 75 days or less from an average of 270 days previously.
Analysts expect the first new batch of crypto ETFs to debut in early October of this year.
The SEC has loosened its governance of cryptocurrencies since U.S. President Donald Trump returned to office earlier this year vowing to make America the “crypto capital of the planet.”
Bitcoin is currently trading at $113,000 U.S., having risen 20% this year.
