SEC Opens Door for More Crypto ETFs—But There’s a Catch
The post SEC Opens Door for More Crypto ETFs—But There’s a Catch appeared on BitcoinEthereumNews.com. The US Securities and Exchange Commission (SEC) is inching closer to broader crypto ETF approvals, thanks to new listing standards centered on derivatives markets. This comes only days after the securities regulator approved in-kind ETF redemptions, allowing investors to swap tokens directly with issuers. Crypto ETFs Get Derivatives-Driven Framework Under New SEC Standards According to a fresh exchange filing, the SEC now allows exchange-traded funds (ETFs) for cryptocurrencies with futures contracts listed for at least six months on either Coinbase Derivatives or the Chicago Mercantile Exchange (CME). The new rule allows an issuer's shares to be listed on an exchange if the underlying commodity to which exposure is given has a contract on a Designated Contract Market for at least 6 months. pic.twitter.com/zd5rDdCxPg — Greg Xethalis (@xethalis) July 30, 2025 Bloomberg ETF analyst Eric Balchunas called the new rule a “pretty big deal,” explaining that it essentially opens the door to ETFs on roughly a dozen altcoins, many of which already had high approval odds. “Any coin that has futures tracking it for over six months on Coinbase’s derivatives exchange would be approved,” Balchunas wrote on X (Twitter). According to the ETF analyst, while CME futures are valid, Coinbase Exchange’s derivatives marketplace has more coins than the CME (Chicago Mercantile Exchange), an American derivatives marketplace. Based on this, Balchunas says it is easier to use Coinbase since it includes the CME ones too. This development follows the SEC’s recent approval of in-kind redemptions for Bitcoin and Ethereum ETFs. Futures Markets Take Center Stage in ETF Eligibility The decision aligned further with traditional financial infrastructure, setting the stage for more complex crypto products. However, the path is not as straightforward for meme coins and less-established digital assets. Balchunas emphasized that assets like Solana-based Bonk or Trump coin, which lack active futures…
The post SEC Opens Door for More Crypto ETFs—But There’s a Catch appeared on BitcoinEthereumNews.com.
The US Securities and Exchange Commission (SEC) is inching closer to broader crypto ETF approvals, thanks to new listing standards centered on derivatives markets. This comes only days after the securities regulator approved in-kind ETF redemptions, allowing investors to swap tokens directly with issuers. Crypto ETFs Get Derivatives-Driven Framework Under New SEC Standards According to a fresh exchange filing, the SEC now allows exchange-traded funds (ETFs) for cryptocurrencies with futures contracts listed for at least six months on either Coinbase Derivatives or the Chicago Mercantile Exchange (CME). The new rule allows an issuer's shares to be listed on an exchange if the underlying commodity to which exposure is given has a contract on a Designated Contract Market for at least 6 months. pic.twitter.com/zd5rDdCxPg — Greg Xethalis (@xethalis) July 30, 2025 Bloomberg ETF analyst Eric Balchunas called the new rule a “pretty big deal,” explaining that it essentially opens the door to ETFs on roughly a dozen altcoins, many of which already had high approval odds. “Any coin that has futures tracking it for over six months on Coinbase’s derivatives exchange would be approved,” Balchunas wrote on X (Twitter). According to the ETF analyst, while CME futures are valid, Coinbase Exchange’s derivatives marketplace has more coins than the CME (Chicago Mercantile Exchange), an American derivatives marketplace. Based on this, Balchunas says it is easier to use Coinbase since it includes the CME ones too. This development follows the SEC’s recent approval of in-kind redemptions for Bitcoin and Ethereum ETFs. Futures Markets Take Center Stage in ETF Eligibility The decision aligned further with traditional financial infrastructure, setting the stage for more complex crypto products. However, the path is not as straightforward for meme coins and less-established digital assets. Balchunas emphasized that assets like Solana-based Bonk or Trump coin, which lack active futures…
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