Cboe and NYSE Arca have submitted proposals to the U.S. Securities and Exchange Commission (SEC) seeking rule changes that would allow certain cryptocurrency exchange-traded funds (ETFs) to be listed automatically. This initiative aims to align crypto ETF standards with regulatory frameworks governing traditional equity and bond ETFs, potentially accelerating market entry timelines.
The proposed amendments target existing listing requirements to enable crypto ETFs to list without undergoing the SEC’s case-by-case approval process under Rule 19b-4. If adopted, this standardized treatment would facilitate faster launches of products tracking Bitcoin, Ethereum, and other digital assets while maintaining regulatory oversight.
Crypto ETFs provide investors with exposure to cryptocurrencies without requiring direct ownership of the underlying assets. Streamlined approvals could significantly enhance investor access and market efficiency, though the SEC retains up to 240 days for review—a critical factor for future product launches.
The move reflects growing institutional demand for regulated crypto investment vehicles and could establish a more efficient pathway for new entrants in the ETF market.