SEC Issues New Crypto ETF Guidance — Here’s What Issuers Must Disclose

Key Points

1. The SEC’s Division of Corporation Finance published a notice detailing what crypto ETF issuers must include in their filings, focusing on disclosures related to structure, custody, and valuation.

2. The new framework aims to streamline the approval process for crypto ETFs, potentially allowing exchanges to list qualifying products after a 75-day review.

3. Issuers must explain the mechanics of creation and redemption, particularly during volatile or illiquid market conditions.

4. The SEC also approved Grayscale’s request to convert its Digital Large Cap Fund into a spot ETF, signaling openness to multi-token products.

5. The guidance reflects the SEC’s evolving stance on crypto oversight, moving toward clearer regulatory standards for digital asset ETFs.