'Get Ready For Crypto's ETPalooza' As SEC Preps Crypto Listing Standards, Bitwise Investment Chief Says

Core Insights - The SEC is expected to introduce generic listing standards for cryptocurrency ETFs, which will facilitate faster and easier approvals for issuers [2][4] - Current processes require special filings to prove market liquidity and lack of manipulation, which can take up to 240 days with no guarantee of approval [2][4] - With the new standards, approvals for cryptocurrency ETFs could be guaranteed in 75 days or less, provided that a futures contract for the underlying asset trades on a U.S.-regulated exchange [4] Industry Impact - The potential list of crypto assets that could gain ETPs includes Solana, XRP, Chainlink, Cardano, Avalanche, Polkadot, Hedera, Dogecoin, Shiba Inu, Litecoin, and Bitcoin Cash, with the list expected to grow as more futures contracts are launched [5] - The adoption of generic listing standards is anticipated to lead to a significant increase in the number of new crypto ETFs, similar to the impact seen in traditional asset ETFs [5][6] - Historically, the ETF industry averaged 117 new ETFs per year before the ETF Rule, which has since increased to over 370 per year [6] Market Dynamics - Despite the expected increase in cryptocurrency ETFs, higher inflows do not necessarily correlate with higher cryptocurrency prices, as inflows depend on market fundamentals [6]