The US Securities and Exchange Commission (SEC) could soon approve spot-exchange-related funds (ETFs) for digital assets with a strong presence on the futures.
A recent request from the Chicago Board Options Exchange (CBOE) offers new instructions on how the agency can approach crypto ETF approvals in the future.
SECs crypto ETF Listing Standard
On July 30, Bloomberg ETF analyst ERIC Balchunas revealed that the proposed standards of the SEC suggest an important required that the digital asset must have traded as a futures contract for at least six months.
According to him, the Coinbase derivatives platform would serve as a reference market for the intended issuers. Coinbase is the largest crypto exchange in the US.
Balchunas explained that Coinbase displays more crypto -futures than the CME, giving it a wider coverage. Since Coinbase contains native and CME -based futures, the sec could consider it a more extensive benchmark.
His colleague, James Seyffart, added that this framework has the Commodity Futures Trading Commission (CFTC) effectively determine which tokens are eligible. If the SEC accepts this rule as proposed, assets can automatically be eligible for spot ETF packaging approved for Futureshandel.
Seyffart added:
“There is nothing about the requirements of the market capitalization/size. Underlying market liquidity. Float% requirements. Nada. Nada. Everything about futures markets for the time being. At least until a place that Crypto exchange comes to the ISG. At the moment, only” Coinbase derivatives “is a member of Puur Crypto -Okpunt.”
Which crypto assets makes it cut?
The rule would enable ETF-EMENDENTEN to mention spot products for primary tokens with long-term futures activity if it is completed.
These include Bitcoin, Ethereum, Litecoin, XRP, Dogecoin, Cardano, Solana, Shiba Inu, Polkadot, Avalanche, Chainlink, Stellar, Hedera and Bitcoin Cash. Each has maintained commercial activity for more than six months on the derivatives exchange of Coinbase.
However, newer or more speculative tokens such as Bonk and Trump -Munt, who do not miss established futures markets, should follow a different path.
These assets can be packed in ETFs using the 1940 Investment Company Act – a more restrictive and complex route that is known as the “40 ACT structure”. Balchunas mentioned the example of the Rex shares Solana ETF as a potential model for these assets.
With this alternative structure, products can launch without needing a 19B-4 entry. Nevertheless, most issuers prefer the 1933 Securities Act for Spot ETFs, because it offers simpler compliance and more direct exposure.