Altcoins that could benefit from the SEC's new ETF listing standard

On Wednesday, the SEC (Securities and Exchange Commission of the United States) made a breakout move in regulating cryptocurrency, approving common listing standards for spot cryptocurrency ETFs.

This new framework removes the 19b-4 case-by-case approval process, simplifying the path for many digital asset ETFs to enter the market in the coming weeks.

Grayscale's Multi-Currency Milestone

Grayscale has gained a first-mover advantage as their Digital Large Cap Fund (GDLC) has received approval under the new listing standards. The products traded under the GDLC code include Bitcoin, Ethereum, XRP, Solana, and Cardano.

CEO Grayscale Peter Mintzberg wrote:

Grayscale Digital Large Cap Fund $GDLC has just been approved for trading alongside the Common Listing Standard. The Grayscale team is working swiftly to launch the FIRST multi-asset cryptocurrency ETP product featuring Bitcoin, Ethereum, XRP, Solana, and Cardano.

This approval marks the first diversified ETP in the US, indicating a shift towards broader portfolio products rather than single-asset ETFs.

Eric Balchunas of Bloomberg explains that around 12-15 cryptocurrencies are currently eligible for consideration for a spot ETF.

However, this depends on whether the altcoins have had futures trading on Coinbase Derivatives for at least six months.

Altcoin attracting attention in the new era of ETF conditions

Some assets have met the main conditions, and futures contracts are regulated on Coinbase. For example, the Solana futures contract is set to launch in February 2024, making the token eligible from August 19.

SolanaFloor indicates:

SEC has approved the listing standards for a common ETF. Assets with futures contracts regulated for trading for 6 months qualify for a spot ETF. Solana met this criterion on August 19, 6 months after the SOL futures contract launched on Coinbase Derivatives.

Investors and the cryptocurrency community are also identifying which tokens may benefit. Chainlink community liaison Zach Rynes emphasized that LINK may soon have its own ETF. He noted that both Bitwise and Grayscale have filed applications.

Meanwhile, the Litecoin Foundation stated that the new standards provide a legal framework for LTC to be listed on U.S. exchanges.

Hedera is also drawing attention, with digital asset investor Mark predicting an HBAR ETF. Market observers view this decision as a potential turning point for wider acceptance, providing the clarity and accessibility needed for investors.

At the same time, it also strengthens confidence in the maturity of the market.

The general sentiment is that with the SEC's approval, the next phase of cryptocurrency ETF funds is no longer a question of 'if', but 'when'.

Transitioning to a common listing standard could expand the list of digital asset ETFs listed in the US beyond Bitcoin and Ethereum. This move will open up new investment vehicles including dozens of altcoins or more.

This represents the clearest path to date for mainstream, regulated access with diversified exposure to cryptocurrencies. More importantly, it comes without the hindrance of direct custody.

ETF analyst James Seyffart joked:

We will soon start the race in the coming weeks.

Disclaimer: All content on this website is for informational purposes only and is not investment advice. Readers should conduct their own research before making any investment decisions. We are not responsible, directly or indirectly, for any damages or losses arising from the use of or reliance on any content you read on this website.