The Chicago Board Options Exchange (CBOE) has submitted a proposal to establish a standardized approval framework for cryptocurrency exchange-traded funds (ETFs). This initiative aims to eliminate the current requirement for fund-specific SEC approvals, potentially accelerating market expansion and aligning digital asset regulations with traditional finance practices.
The proposed rule change would permit crypto ETF issuers to list multiple products under one comprehensive structure. This removes the necessity for individual 19b-4 filings – regulatory applications currently mandated for each new ETF – significantly reducing administrative barriers and regulatory delays.
CBOE’s move aligns with broader industry efforts to enhance regulatory efficiency, including similar proposals from NYSE Arca. Recent SEC decisions allowing in-kind creations and redemptions for crypto ETFs have already signaled a shift toward integrating these products with established financial mechanisms.
If adopted, the framework could broaden investor access to diverse crypto ETFs under strengthened regulatory oversight. Issuers would benefit from expedited approval timelines and lower operational costs, while the market overall may experience heightened innovation and improved capital efficiency.