SEC Slashes Crypto ETF Approval Time
Key Takeaway: The SEC has introduced groundbreaking reforms to streamline crypto ETF approvals, cutting review times from 240 days to just 75. These new rules pave the way for Solana and XRP funds by late 2025, enhancing investor access, accelerating financial innovation, and fostering broader institutional adoption of digital assets within regulated U.S. markets.
The U.S. Securities and Exchange Commission has revolutionized the cryptocurrency investment landscape by approving new listing rules that dramatically reduce approval times for crypto spot exchange-traded funds from up to 240 days to just 75 days.
On September 17, 2025, the SEC voted to approve proposed rule changes by three major national securities exchanges—NYSE, Nasdaq, and Cboe Global Markets—enabling them to adopt generic listing standards for cryptocurrency and other spot commodity exchange-traded products. This watershed decision eliminates the case-by-case review process that has historically created regulatory bottlenecks for digital asset investment products.
Streamlined Process Ends Regulatory Gridlock
Under the previous framework, each spot crypto ETF application underwent separate reviews requiring two parallel filings—one from the exchange and another from the asset manager—each requiring approval from different SEC divisions. The cumbersome Section 19(b) rule filing process often extended for months with uncertain outcomes, discouraging market participants.
The new generic listing standards allow exchanges to list and trade Commodity-Based Trust Shares that meet approved criteria without first submitting individual proposed rule changes to the Commission. SEC Chairman Paul Atkins characterized this approval as ensuring “our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets”.
Eligibility Requirements: Maintain Oversight
To qualify for expedited approval, crypto ETFs must meet specific eligibility criteria. The underlying commodity must be actively traded on a platform that is a member of the Intermarket Surveillance Group, ensuring exchanges have access to shared trading data for proper monitoring. Alternatively, the commodity must underlie futures contracts listed on designated contract markets for at least six months, with surveillance-sharing agreements in place.
Steve Feinour, a partner at Stradley Ronon who has worked on pending applications, expects most crypto ETFs will utilize the provision allowing expedited approvals for cryptocurrencies that have had CFTC-regulated futures contracts for at least six months.
Solana and XRP ETFs Expected by Late 2025
The first ETFs likely to launch under these new rules are those tracking Solana and XRP, with asset managers having filed applications over a year ago. Bloomberg analysts estimate a 95% confidence level for approval of these altcoin ETFs by late 2025, with projected inflows of $5-8 billion. Market experts predict the first products could debut as early as October 2025.
James Seyffart, ETF research analyst at Bloomberg Intelligence, described this development as “the crypto ETP framework we’ve been waiting for,” predicting “a wave of spot crypto ETP launches in the coming weeks and months”.
The SEC currently has 96 cryptocurrency ETF applications pending review, marking a historic peak in submissions. Solana leads with at least 16 applications from different asset management firms, while XRP follows with 15 applications from firms including ProShares and Franklin Templeton.
First Multi-Crypto ETF Gets Green Light
Simultaneously with the listing standards approval, the SEC authorized the Grayscale Digital Large Cap Fund, the first multi-cryptocurrency ETF in the United States. This fund tracks the CoinDesk 5 Index and holds Bitcoin, Ethereum, XRP, Solana, and Cardano, allocating more than 70% to Bitcoin and around 17% to Ethereum.
The Commission also approved listing and trading of p.m.-settled options on the Cboe Bitcoin U.S. ETF Index, broadening crypto-linked derivatives available on regulated U.S. markets.
Industry Celebrates Regulatory Breakthrough
The announcement has generated significant optimism within the cryptocurrency industry. Matt Hougan, Chief Investment Officer at Bitwise, noted that when the SEC established generic listing standards for traditional assets in 2019, annual ETF launches in the U.S. surged from an average of 117 to over 370.
Eric Balchunas of Bloomberg suggested there’s a “good chance we see north of 100 crypto ETFs launched in the next 12 months”. Teddy Fusaro, president of Bitwise Asset Management, characterized the move as “a watershed moment in America’s regulatory approach to digital assets”.
Kristin Smith, President of the Solana Policy Institute, expressed enthusiasm about the development, stating the SEC continues “to promote the rule of law by setting clear rules of the road for US businesses”.
Some Commissioners Express Concerns
However, Commissioner Caroline Crenshaw expressed concerns that the standards make it too easy for exchanges to introduce new products without extensive review. She warned that the Commission is “passing the buck on reviewing these proposals” in favor of “fast tracking these new and arguably unproven products to market”.
Market Impact and Future Outlook
The crypto ETF journey has evolved significantly since the first Bitcoin ETFs launched in January 2024 after over a decade of applications. The initial eleven Bitcoin ETF providers collectively acquired 1.3 million Bitcoin valued at approximately $149 billion, representing roughly 6% of Bitcoin’s total supply.
This regulatory breakthrough positions the United States to maintain leadership in global financial innovation while providing investors unprecedented access to the expanding cryptocurrency ecosystem. The streamlined process is expected to reduce regulatory uncertainty for fund managers and exchanges while potentially improving market liquidity through increased product availability.
As October deadlines approach for various altcoin ETF decisions, the cryptocurrency market demonstrates growing resilience and institutional acceptance, marking a pivotal moment in digital asset regulation.
Source: Reuters, SEC Press Releases, Bloomberg Intelligence, CoinTribune, and other financial news outlets.
