SEC approves generic listing rules for commodity-based trusts
The US Securities and Exchange Commission (SEC) has reportedly accepted earlier proposals on new listing standards for commodity-based trust shares. This significant change paves the way for listing digital...
The US Securities and Exchange Commission (SEC) has reportedly accepted earlier proposals on new listing standards for commodity-based trust shares. This significant change paves the way for listing digital assets without individual approvals.
The SEC’s decision, which is documented in its filing simplifying the process under Rule 6c-11, particularly relates to stock exchanges like NYSE Arca, Cboe BZX, and Nasdaq. Notably, this has greatly reduced the approval timeframe, which lasted several months.
The SEC gives green light to the commodity-based trust’s new generic listing standards
In a statement, Paul Atkins, the US Securities and Exchange Commission Chairman, mentioned that their principal aim in approving these general listing standards was to position their capital markets as the most preferred globally for the groundbreaking advancement of digital assets.
The chairman further highlighted that this approval facilitates the listing process and reduces obstacles hindering the accessibility of digital asset products in America’s stable capital markets, encouraging innovation and improving investor options.
This update was released at a time when applications for Solana, XRP, Litecoin, and Dogecoin spot ETFs are waiting for the SEC’s approval. Concerning this, the commission faces deadlines starting in October to decide on the situation, along with a few others.
In the meantime, for one to be eligible for listing, a crypto spot ETF needs to have a commodity that either trades on a market related to the Intermarket Surveillance Group and has surveillance access, or is connected to a futures contract with an official market listing at a minimum of six months and a deal for sharing surveillance.
Another option to qualify for listing is if another ETF already tracks the proposed ETF with no less than 40% exposure. Additionally, the securities regulator stated that it should be listed on a national securities exchange. It is worth noting that when an exchange intends to list and trade ETPs that do not follow the standards set for approved generic listing, it is required to file a rule submission with the SEC.
Crypto Analysts such as ETF analyst James Seyffart have viewed this change as a game-changer in the crypto ecosystem. Seyffart stated that this is the kind of crypto ETP framework he has long awaited. Following this, he anticipated that any surge of crypto investment products would be introduced in the US soon.
Despite being viewed as a game-changer, SEC Commissioner Caroline Crenshaw has raised concerns about the new listing standards. Based on her argument, they might raise consumer safety issues by flooding the market with products not been carefully inspected for investor safety.
The SEC approves REX-Osprey’s new altcoin exchange-traded funds
Reports dated September 16 had highlighted that two new altcoin exchange-traded funds (ETFs) tied to XRP and Dogecoin were set to launch in the US this week. This action revealed that the SEC has recently become more accepting of crypto investment options.
This announcement came after REX-Osprey, a fund issuer, informed the public that the REX-Osprey XRP ETF will be launched during the week. Trading under the ticker XRPR, these new US ETFs will be the first in history to grant investors direct accessibility to the third-largest cryptocurrency by market cap.
The tremendous success followed REX and Osprey’s successful completion of the SEC’s 75-day review period, and they were expected to begin trading on Friday, September 19, if no delays arise.
Interestingly, the product will be launched in a simple approval process, under the Investment Company Act of 1940, compared to the previous approval process, the Securities Act of 1933, used for spot Bitcoin ETFs.
In contrast to products that directly own the actual asset, the 1940 Act approval process enables the fund to start on its own immediately, 75 days after filing. However, if the commission raises any concerns, this will not occur.
The SEC has also approved Grayscale’s multi-crypto asset exchange-traded product, amid the agency’s broader effort to fast-track approvals for crypto funds.
On Wednesday, Grayscale CEO Peter Mintzberg announced on the social media platform X that the SEC had just given the green light for its Grayscale Digital Large Cap Fund (GDLC).
Mintsberg said in his post that GDLC would become the first multi-crypto asset ETP on the market. The fund exposes five cryptocurrencies — Bitcoin, Ether, XRP, Solana and Cardano.
“Thank you to the SEC Crypto Task Force for their continued, unmatched efforts in bringing the regulatory clarity our industry deserves,” Mintzberg wrote in the post.
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