Cboe and NYSE Arca Propose Rule Changes to Potentially Ease Bitcoin ETF Listings and Market Access

Key Points

1. Cboe and NYSE Arca seek to remove the lengthy 19b-4 approval process for crypto ETFs, proposing amendments to Cboe’s Rule 14.11(e)(4) and NYSE Arca’s Rule 8.201-E.

2. The SEC’s approval of in-kind redemptions for spot Bitcoin and Ethereum ETFs signals growing regulatory acceptance of crypto funds.

3. The proposed changes would create a standardized framework for crypto ETF approvals, eliminating case-by-case SEC reviews and reducing approval timelines from up to 240 days to a shorter period.

4. Recent legislative efforts, such as the GENIUS Act and CLARITY Act, aim to establish a stable regulatory environment for digital assets, supporting broader crypto ETF access.

5. The rule changes align crypto ETFs with traditional ETFs, potentially boosting investor confidence and market stability.