Cboe BZX and NYSE Arca have jointly proposed a standardized framework designed to accelerate the listing process for cryptocurrency exchange-traded funds (ETFs). The rule change filings seek to eliminate the Securities and Exchange Commission’s current 19b-4 approval requirement, potentially expediting market access for Bitcoin, Ethereum, and other digital asset funds currently hindered by lengthy regulatory reviews.
The proposed amendments establish clear qualitative standards for eligible crypto ETFs, emphasizing regulatory consistency and operational efficiency. This framework intends to create benchmarks for sponsor registration and fund governance while maintaining compliance oversight through existing regulatory channels.
The initiative aligns with the SEC’s recent shift allowing in-kind ETF redemptions, which harmonizes crypto ETF structures with traditional fund operations. Market analysts suggest the standardized approach could significantly reduce approval timelines and lower operational costs while increasing liquidity within the digital asset market.
The proposal complements the White House’s broader digital asset strategy advocating for regulatory harmonization. As SEC Chair Gary Gensler emphasizes increased oversight for crypto intermediaries, this framework aims to balance market efficiency with compliance demands in the evolving ETF landscape.