SEC’s Approval Odds for 16 Spot Crypto ETFs Now 100%

Core Insights - The U.S. Securities and Exchange Commission (SEC) is poised to approve a significant number of new spot crypto exchange-traded funds (ETFs), with sixteen funds currently under review, including those for Solana (SOL), XRP, Litecoin (LTC), Cardano (ADA), and Dogecoin (DOGE) [1][7] - This potential approval represents the SEC's most substantial acceptance of crypto products since the approval of spot Bitcoin (BTC) and Ethereum (ETH) ETFs in 2024, which led to record trading volumes and prompted over 90 additional applications awaiting regulatory approval [2] SEC Process Changes - In mid-September, the SEC approved rule changes from Nasdaq, NYSE Arca, and Cboe BZX to implement generic listing standards for commodity-based trust shares, streamlining the approval process for ETFs backed by spot commodities, including cryptocurrencies [3] - The SEC has instructed issuers of SOL, XRP, ADA, LTC, and DOGE ETFs to withdraw their 19b-4 filings, as the new system allows for S-1 filings to suffice for approval, enabling the SEC to act without waiting for formal deadlines [4] Approval Expectations - Analysts, including Bloomberg's Eric Balchunas, predict a 100% probability of approval for all sixteen pending applications, indicating that the SEC's adoption of generic standards and the issuers' repeated amendments suggest that final clearance is imminent [5][6] - The new framework allows the SEC to approve products in batches or all at once, provided the tokens meet the established criteria [6] Broader ETF Landscape - In addition to the sixteen funds awaiting approval, nearly 80 more crypto ETF applications are in the pipeline, with the anticipated approvals potentially setting a precedent for further adoption of digital assets on Wall Street beyond Bitcoin and Ethereum [8]