“ETPalooza”: how new SEC rules could reshape crypto ETP market
A new report from Bitwise Investments examines the upcoming change in rules for crypto-ETPs in the US. This could be one of the key events in the industry in late 2025.
Bitwise Chief Investment Officer Matt Hougan noted that the regulatory review process for new crypto Exchange-Traded Products (ETPs) can currently stretch up to 240 days, with no guarantee of approval. Firms file applications at their own risk.
In practice, spot crypto ETPs are approved on a case-by-case basis. Any issuer seeking to launch a product tied to a cryptocurrency such as Solana or Chainlink must submit a formal filing to the SEC and demonstrate that the asset’s market is both liquid and resistant to manipulation. From there, the outcome lies entirely with SEC commissioners.
That framework, however, may soon shift. The SEC is working on introducing Generic Listing Standards, a set of universal criteria for ETP approval. If adopted, filings that meet these predefined requirements could move through the process in as little as 75 days, with approval becoming nearly automatic. The key condition is that the underlying asset must already have a futures contract listed on a regulated U.S. exchange such as CME, Cboe, or alternative venues like Coinbase Derivatives Exchange.
Which tokens could be in play? Bitwise names a broad list: Solana, XRP, Chainlink, Cardano, Avalanche, Polkadot, Hedera, Dogecoin, Shiba Inu, Litecoin, Bitcoin Cash, and others. When appropriate futures appear, the list could expand.
The history of ETFs shows that similar standards do indeed stimulate growth. In late 2019, the SEC approved a generic listing rule for stock and bond ETFs, and the number of new instruments tripled in the first year alone.
The impact on asset prices could be significant, especially if interest extends beyond the ETPs to the underlying assets themselves. The availability of a convenient access tool through brokers makes digital assets more visible and understandable to the general public.
However, these standards have not yet been finalized, and adjustments are possible. In addition, the effectiveness of ETPs depends on macroeconomic conditions and the state of the global economy. Therefore, no one is currently predicting the unequivocal success of this initiative.
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