TLDR
- SEC developing streamlined crypto ETF approval process reducing review time from 240 days to 75 days
- New rules could launch in October, potentially triggering wave of crypto ETF applications
- Bitwise files tokenization-focused ETF proposal expected to launch by Thanksgiving
- XRP and Dogecoin ETFs launching this week as altcoin investment options expand
- Federal Reserve hosting tokenization conference next month showing institutional interest
The Securities and Exchange Commission is developing new rules that could revolutionize crypto ETF approvals. These changes may roll out as early as October 2025.
Currently, the SEC evaluates each crypto ETF application individually through a lengthy process. Reviews can stretch up to 240 days without guaranteed approval.
The proposed system would drastically change this approach. Applications meeting specific criteria would receive “virtually guaranteed” approval within 75 days or less.
Bitwise Chief Investment Officer Matt Hougan predicts these changes will spark numerous new crypto ETF launches. Historical ETF data supports this expectation when approval processes become more efficient.
However, Hougan cautions investors about confusing product launches with market success. Simply having more crypto ETFs available doesn’t guarantee investment inflows.
Market Fundamentals Drive ETF Success
Success depends on genuine investor interest in underlying cryptocurrencies rather than product availability alone. ETFs tracking assets like Bitcoin Cash may struggle without renewed interest in those specific tokens.
Two new altcoin ETFs are debuting this week in US markets. These products will provide traditional investors exposure to XRP and Dogecoin price movements.
Earlier this year, the first Solana staking ETF launched with $12 million in opening day inflows. Bloomberg ETF analyst James Seyffart characterized this as a strong trading debut.
The Altcoin Season Index recently hit its highest level in 90 days, suggesting renewed interest in alternative cryptocurrencies beyond Bitcoin and Ethereum.
Tokenization Theme Gains Regulatory Support
Bitwise submitted a new ETF proposal Tuesday targeting the growing tokenization sector. The Bitwise Stablecoin & Tokenization ETF would invest in companies and assets benefiting from blockchain-based financial products.
Bloomberg analyst Eric Balchunas expects this fund could receive approval and launch around Thanksgiving. The ETF would hold both traditional stocks and crypto assets related to tokenization trends.
This filing reflects shifting regulatory attitudes toward blockchain technology. SEC Chair Paul Atkins has expressed commitment to providing regulatory relief ensuring American competitiveness in emerging financial technologies.
Major crypto exchanges including Coinbase and Kraken are exploring tokenized equity trading. Successful implementation could position these platforms as direct competitors to traditional stock brokerages.
Growing Institutional Interest
The Federal Reserve announced plans for a conference next month focusing on stablecoin business models and tokenization of financial services. This signals increasing institutional recognition of blockchain’s potential in traditional finance.
Bitwise acknowledged the evolving regulatory environment in its filing documents. The company noted that unclear regulations could impact token ownership rights and transfer mechanisms.
Current SEC reviews require issuers to demonstrate sufficient market liquidity and manipulation resistance. The new streamlined process would establish clear requirements that virtually guarantee approval when met.
Crypto firms and traditional finance companies are positioning themselves for expanded tokenization opportunities as regulatory clarity improves.
