Which Altcoins Meet The SEC’s ETF Listing Standards?

Key Takeaways

• The SEC’s ETF Listing Standards remove the case-by-case approval model for crypto ETFs.

• Grayscale’s GDLC becomes the first multi-asset ETF to be approved under the new framework.

• Altcoins like Solana, Litecoin, Dogecoin, Chainlink, and Hedera may soon launch ETFs.

• To qualify, assets must have six months of regulated futures trading on a U.S. platform.

• The change marks a critical step toward broader adoption and mainstream crypto investment.

What Are The SEC’s ETF Listing Standards?

The SEC’s newly adopted generic listing standards remove the need for individual ETFs to undergo the time-consuming 19b-4 approval process.

Instead, any cryptocurrency that meets predefined eligibility criteria, chiefly having a regulated futures contract trading for at least six months, can be included in a spot ETF.

The New Listing Standards

Source: U.S. SEC

This regulatory clarity is poised to accelerate ETF launches, encouraging broader market participation and diversification.

Grayscale Leads With Multi-Asset Approval

Grayscale has taken the first leap under the new rules. The company’s Digital Large Cap Fund (GDLC) has been approved as the first multi-crypto exchange-traded product (ETP) under the SEC’s updated listing framework.

The GDLC includes a diversified basket of leading cryptocurrencies:

• Bitcoin (BTC)

• Ethereum (ETH)

• XRP

• Solana (SOL)

• Cardano (ADA)

CEO Peter Mintzberg said:

“Grayscale Digital Large Cap Fund $GDLC was just approved for trading under the Generic Listing Standards. This will be the first multi-crypto asset ETP to reach the market.”

With this approval, Grayscale has secured a first-mover advantage in the era of multi-asset crypto ETFs.

Altcoins That Could Be Next In Line

The new SEC’s ETF Listing Standards open the door for several other altcoins to join the ETF ecosystem, provided they meet the regulated futures trading requirement.

Key Criteria For ETF Inclusion

To qualify, an altcoin must have:

• Regulated U.S.-based futures trading

• At least six months of trading history on a platform like Coinbase Derivatives

All Coins That Have Futures On Coinbase That Are Eligible For Spot ETF Applications

Source: Eric Balchunas

Eligible Altcoins Under The New Framework

Some altcoins already meet the SEC’s eligibility conditions or are close to doing so:

Solana (SOL)

• Futures launched: February 2024

• ETF eligibility: Met as of August 2024

Dogecoin (DOGE)

• Has regulated futures trading

• Strong retail and institutional interest

Litecoin (LTC)

• Backed by the Litecoin Foundation

• Futures trading well-established

Chainlink (LINK)

• Supported by community and institutional filings

• Applications submitted by Bitwise and Grayscale

Hedera (HBAR)

• Gaining traction with institutional investors

• Anticipated ETF launch on the horizon

Why The New ETF Framework Matters

The approval of the SEC’s ETF Listing Standards is more than just a regulatory shift, it represents a turning point for the broader cryptocurrency market.

Benefits Of The New Standards:

• Faster time to market for ETFs

• Increased investor confidence and clarity

• Broader asset coverage, moving beyond BTC and ETH

• Easier access for institutions and retail investors

• No need for direct custody of digital assets

Market Implications: A New Era For Crypto ETFs

The move by the SEC is widely seen as the next step in the maturation of the crypto industry. By creating clear, consistent listing standards, the SEC is paving the way for:

• A diversified ETF landscape

• Mainstream adoption of altcoins

• Increased liquidity and stability in the crypto market

Expect to see more ETF filings in the coming weeks, with products that offer exposure to a broader set of assets, an attractive proposition for portfolio diversification.

FAQ

What are the SEC’s ETF Listing Standards?

They are new rules approved by the SEC that allow for the automatic listing of spot crypto ETFs, provided the underlying assets meet certain criteria, such as having six months of regulated futures trading.

Which altcoins are currently eligible under these standards?

Solana, Litecoin, Dogecoin, and Chainlink are among the top contenders. Hedera (HBAR) is also gaining attention and may qualify soon.

Why is Grayscale’s GDLC significant?

It is the first multi-asset crypto ETF approved under the new framework and includes BTC, ETH, XRP, SOL, and ADA.

When can we expect new ETFs to launch?

According to market analysts, new ETFs could start hitting the market within weeks, given the streamlined listing process.

Does this mean all altcoins will have ETFs?

Not necessarily. Only those with regulated futures markets and consistent trading history are eligible under the SEC’s ETF Listing Standards.