The U.S. Securities and Exchange Commission (SEC) is considering a new regulatory framework to simplify Bitcoin exchange-traded fund (ETF) approvals by focusing on market capitalization and liquidity metrics. This proposal would replace the current dual-filing requirement with a single S-1 registration form accompanied by a fixed 75-day review window, accelerating the authorization process for crypto-based funds.
The revised standards prioritize market stability through minimum thresholds for average daily trading volume, liquidity depth, and token market capitalization—requirements designed to filter for high-quality digital assets. This regulatory shift acknowledges the growing maturity of cryptocurrency ETFs, which have collectively surpassed $90 billion in assets under management amid mainstream institutional adoption.
The initiative responds in part to legal precedents such as the Grayscale Bitcoin Trust court ruling, which challenged the SEC’s earlier rejection of spot Bitcoin ETF applications. Industry analysts anticipate that the streamlined process will lower administrative barriers, incentivize new entrants to the ETF market, and foster greater product innovation.
If implemented, the framework could fundamentally reshape the crypto fund landscape by standardizing evaluations and addressing previous bottlenecks in ETF approvals while maintaining rigorous investor protection standards.