In a bold move that could reshape the crypto investment landscape, two major U.S. exchanges—Cboe BZX and NYSE Arca—are pushing the SEC for faster Bitcoin ETF approvals. This proposed rule change could eliminate lengthy case-by-case reviews, opening the floodgates for crypto investment products. Here’s what you need to know.
Why This Bitcoin ETF Rule Change Matters
The joint proposal seeks to align crypto ETFs with traditional commodity ETFs by applying a standardized approval framework. Currently, each crypto ETF undergoes:
- Individual SEC review under Rule 19b-4
- Months-long approval processes
- Resource-intensive filings for each product
How the SEC’s Crypto ETF Process Could Transform
If approved, the change would:
| Current Process | Proposed Process |
|---|---|
| Case-by-case reviews | Automatic listings for qualifying products |
| 240-day maximum review period | Potentially immediate approvals |
| High regulatory friction | Streamlined market entry |
The Controversy: Regulatory Favoritism Concerns
Legal experts warn this change might disproportionately benefit Bitcoin and Ethereum ETFs while leaving other crypto assets behind. Key concerns include:
- Potential stifling of innovation for altcoins
- Uneven playing field for different crypto projects
- Need for stronger investor protections
What’s Next for Crypto ETF Investors?
The SEC has up to 240 days to decide, but market watchers are already anticipating:
- Potential approval of Solana and XRP ETFs
- Improved liquidity and tighter spreads
- Increased institutional participation
This proposed rule change represents a watershed moment for crypto adoption. By potentially removing regulatory bottlenecks, it could usher in a new era of mainstream cryptocurrency investment through regulated ETF products.
Frequently Asked Questions
How would this rule change affect existing Bitcoin ETFs?
Existing ETFs wouldn’t be directly affected, but the change could lead to more competitive products entering the market.
What cryptocurrencies would qualify under the new rules?
The proposal suggests assets with sufficient liquidity and market surveillance would qualify, likely including Bitcoin and Ethereum initially.
How long until we might see this change implemented?
The SEC has up to 240 days to decide, putting a potential decision window in early 2026.
Would this make crypto ETFs riskier for investors?
While approval would be faster, products would still need to meet predefined conditions designed to protect investors.
