The US Securities and Exchange Commission (SEC) is getting closer to approving new cryptocurrency ETFs, Bloomberg stock analyst Eric Balchunas reported.
The regulator has proposed listing standards that focus on derivatives markets.
The SEC will allow cryptocurrency exchange-traded funds whose futures have been trading for at least six months on Coinbase Derivatives or the Chicago Mercantile Exchange.
Balchunas called the rule a pretty big deal, paving the way for ETFs for about a dozen altcoins. He added that futures on the asset must have been trading for more than six months on the derivatives exchange Coinbase for approval.
Bloomberg stock analyst James Seyffart believes that the SEC is effectively handing over decision-making to another agency.“The CFTC is the primary decider of what asset can have futures contracts & having futures is the primary requirement of this rule proposal,” he wrote
Seyffart stressed that the proposed standards do not mention market capitalization, liquidity, or the number of tokens in circulation.
Balchunas noted that this path is not suitable for meme coins or assets with less developed markets.
They will require a more complex one, the Investment Company Act of 1940. Most spot crypto ETFs are governed by the Securities Act of 1933, which issuers choose because of its simpler requirements.
Balchunas estimates that the first approvals could come as early as September or October. The rule change is a major milestone in the integration of cryptocurrencies into traditional financial markets. It offers a clearer path for ETFs on digital assets other than Bitcoin and Ethereum.
Recall that in June, Balchunas predicted the "summer of altcoin ETFs." According to him, the US Securities and Exchange Commission may approve instruments based on a basket of cryptocurrencies as early as July.
