The SEC's new regulations open the door for encryption ETFs, with 10 major Spot ETFs expected to launch?

Author: SoSo Value

The United States SEC officially passed the "General Listing Standards for Commodity Trust Shares" (Release No. 34-103995) on September 17. This is not a simple technical document, but a genuine "institutional gateway" — it means that the listing of future cryptocurrency spot ETFs will shift from case-by-case approval to a standardized and expedited general standard process.**

In the context of the Federal Reserve just launching a new round of interest rate cuts and the expectation of a depreciating dollar, this institutional breakthrough brings a "liquidity + institutionalization" dual resonance to crypto assets, making it one of the most iconic regulatory events in the crypto market this year.

In this article, we will answer the following questions:

• What exactly has changed with the new regulations, and what impacts will it bring**?**
• Which cryptocurrencies will benefit first, which coins are likely to get their spot ETFs approved first?
• What should investors pay attention to? In the context of new regulations being implemented and the logic of capital migration being reshaped, how can ordinary investors seize opportunities and control risks?

**1. What has changed in the general standards? From **"Is it allowed?" to **"How to regulate?"

Before the release of the new regulations, cryptocurrency spot ETFs must go through a case-by-case approval process, which involves crossing two approval thresholds:

1. 19b-4 Rule Change Approval —— A request submitted by the exchange to the SEC to amend exchange rules, which is subject to substantive approval and may be rejected by the SEC.
2. S-1 Prospectus Approval —— Submitted by the ETF issuer for SEC approval, disclosing details such as fund structure, manager, fee rates, etc., with a focus on formal review.

This dual approval model not only has a lengthy process but is often slowed down by political maneuvering and compliance disagreements. For example, the Bitcoin spot ETF saw a surge in applications in 2021, but in 2021-2022, it was rejected by the SEC at the 19b-4 stage. From May to July 2023, a new batch of applications was submitted, and it wasn't until January 10, 2024, that the 19b-4 and S-1 documents were approved on the same day, experiencing nearly 8 months of back-and-forth.

The SEC passed the "General Listing Standards" on September 17, 2025, which brought fundamental changes. The standard specifies that eligible commodity ETFs do not need to submit 19b-4 applications on a case-by-case basis, but only need to go through the S-1 approval process, significantly reducing approval time and costs.

Standard-compliantETFs must meet one of the following three paths:

1. The underlying products have been traded on ISG (Intermarket Surveillance Group) member markets, such as the New York Stock Exchange, NASDAQ, CME, London Stock Exchange, etc.
2. The futures contracts of the underlying commodity have been continuously traded on the DCM (Designated Contract Market) for at least six months, and a comprehensive monitoring and sharing agreement (CSSA) has been established between exchanges. DCM refers to compliance exchanges authorized by the CFTC (U.S. Commodity Futures Trading Commission), such as CME, CBOT, Coinbase Derivatives Exchange, etc.
3. Existing ETFs are listed on national securities exchanges in the United States, and at least 40% of their assets are allocated to the underlying commodity.

As most crypto assets are regarded as "commodities", this rule is almost tailor-made for crypto spot ETFs. Among them, the second path is the most feasible: as long as a certain crypto asset has futures contracts running for six months in exchanges such as CME or Coinbase Derivatives, the 19b-4 approval process can be bypassed, and its spot ETF is expected to be launched quickly.

Figure 1: Approval Process for the Listing of New and Old Cryptocurrency Spot ETFs (Data Source: SoSoValue)

The changes brought by the new regulations compared to the old model are mainly reflected in two aspects:

1**) Simplified approval process: 19b-4 is no longer a "roadblock"****.

Under the old model, cryptocurrency spot ETFs require dual approval for both the 19b-4 rule change and the S-1 prospectus, with neither being dispensable. This was the case for past Bitcoin and Ethereum ETFs: the review time for the 19b-4 lasted up to 240 days, becoming a key factor in slowing the pace. However, under the new regulations, as long as the product meets the unified standards, exchanges can directly proceed to the S-1 approval process, eliminating the repeated negotiations of the 19b-4, significantly shortening the listing cycle.

2**) Shift of focus in review authority: CFTC and DCM play a more critical role.

The qualification review of futures contracts is gradually being transferred from the SEC to DCM (Designated Contract Market) and CFTC (Commodity Futures Trading Commission). According to the current system, there are mainly two ways for DCM to launch new contracts:

• Self-Certification: DCM only needs to submit a self-declaration to the CFTC one business day before the contract goes live. If there are no objections, the contract will automatically take effect. This typically requires the spot market to have price transparency, sufficient liquidity, and controllable market manipulation risks.
• Voluntary Approval: If there is a dispute regarding the contract, DCM may proactively apply for CFTC approval to obtain stronger legal protection.

This means that as long as the spot market for a certain type of cryptocurrency asset is healthy enough, DCM has significant autonomy to promote its futures listing. Meanwhile, the SEC's review of the S-1 mainly focuses on whether the information disclosure is adequate and whether the product structure is compliant, which is more of a "formal review."

Overall, the SEC is transitioning from a case-by-case approver to a rule maker. The regulatory attitude has shifted from "whether to allow" to "how to regulate". Under this framework, the launch of cryptocurrency spot ETFs will be more efficient and standardized.

2. Which cryptocurrencies are most likely to benefit? The 10 mainstream coins that have existing futures contracts and have submitted ETF applications will be the first to welcome ETF landing.

In the existing DCM (Designated Contract Market), Coinbase's Coinbase Derivatives Exchange has the most comprehensive line of cryptocurrency futures products, currently covering 14 types of cryptocurrencies. (See Figure 2 for details).

Figure 2: Futures list already listed on Coinbase (Data source: SoSoValue)

According to SoSoValue data, there are currently 35 cryptocurrency spot ETFs waiting for approval, covering 13 currencies. Except forSUI,TRX, andJitoSOL, the remaining10currencies have already launched futures onCoinbase Derivativesexchange for more than6months, thus fully complying with the new general requirements.

*Figure 3: The 10 mainstream coins with existing futures contracts & submitted ETF applications will be the first to welcome the ETF rollout (Data source: SoSoValue) *

This means:

• Covering 10 currencies LTC, SOL, XRP, DOGE, ADA, DOT, HBAR, AVAX, LINK, BCH, around 30 spot ETFs are expected to be quickly approved in the coming weeks or months **;
• The market is brewing the next wave of ETF "explosion tide"****. For example, although currencies like XLM and SHIB already have futures, no one has submitted a spot ETF application to date, making it highly likely that they will become key targets for the next batch of managers.

3. When the interest rate cut cycle coincides with an explosion of ETFs, what should investors pay attention to? ETF issuance progress, macro interest rate trends, cross-asset allocation, and capital flow

In the short term, the implementation of universal standards will significantly accelerate the pace of cryptocurrency ETFs launch, lower the issuance threshold, and attract more institutional funds and compliant products to enter the market.

At the same time, the Federal Reserve lowered interest rates by 25 basis points as expected on Thursday, and the dot plot signaled two more rate cuts this year, marking the beginning of the easing cycle. The expectation of a depreciation of the US dollar is beginning to take shape, and global capital is searching for new asset anchors.

Macroeconomic liquidity and institutional innovation are colliding: on one side is the enormous liquidity released by the dollar system, and on the other side is the potential product explosion of cryptocurrency ETFs. The intertwining of the two may reshape the logic of capital allocation, accelerate the deep integration of traditional capital markets and cryptocurrency assets, and could even become the starting point for the redrawing of the global asset landscape in the next decade.

In this context, investors need to focus on four aspects:

• ETF** Issuance Rhythm:** For cryptocurrency spot ETFs that meet general rules, the S-1 often updates its prospectus multiple times before final approval, supplementing details such as fees and initial issuance size. These updates often indicate that the product is entering the "countdown" to listing.
• Macroeconomic Environment: The Federal Reserve's interest rate path, dot plot expectations, and the trend of the US dollar index will determine the direction of risk appetite switching, which is the core clue for asset pricing.

Figure 4: Expected Path of Federal Reserve Interest Rate Cuts (Data Source: SoSoValue)

• Cross-Asset Allocation: During periods of dollar weakness, gold, commodities, and crypto assets often complement each other. By diversifying exposure, investors can both reduce risk and capture multiple yield curves.
• Capital Flow: Compared to price fluctuations, the daily net inflow of ETFs better reflects market sentiment and trends, often having stronger foresight, helping investors seize opportunities before market reversals.

Figure 5: Bitcoin Spot ETF Daily Net Inflow (Data Source: SoSoValue)

Figure6*: Daily net inflow of Ethereum spot ETF (Data source: SoSoValue )***

In summary, the new regulations combined with the interest rate cut cycle are opening a "dual gateway" of system and liquidity for crypto ETFs. For investors, this is both a new opportunity window and a profound reshaping of asset allocation logic.