'Get Ready For Crypto's ETPalooza' As SEC Preps Crypto Listing Standards, Bitwise Investment Chief Says

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The Securities and Exchange Commission is set to unlock a cryptocurrency "ETPalooza" with generic listing standards, says Bitwise investment chief Matt Hougan.

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"Get ready for crypto’s ETPalooza," Hougan said Monday, noting that generic cryptocurrency exchange-traded fund listing standards expected as soon as October will lead to faster and easier approvals.

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Presently, issuers looking to launch a cryptocurrency ETF must prepare a special filing, proving that the market is liquid and not subject to manipulation. But the process is significantly time-consuming, Hougan said, adding that the SEC review process can take up to 240 days with no guarantee of approval.

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With generic listing standards, cryptocurrency ETFs can launch by meeting predetermined criteria, with approval guaranteed in 75 days or less, Hougan said.

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While the SEC is still determining these standards, Hougan said most proposals argue that issuers should be able to launch a cryptocurrency ETF if a futures contract for the underlying asset trades on a U.S.-regulated exchange. These exchanges could range from the Chicago Mercantile Exchange to Bitnomial, he said.

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"Assuming the more expansive list makes the grade, the list of crypto assets that could soon gain ETPs includes Solana, XRP, Chainlink, Cardano, Avalanche, Polkadot, Hedera, Dogecoin, Shiba Inu, Litecoin, and Bitcoin Cash, among others," Hougan said. "As more futures contracts launch, this list will presumably grow."

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​Hougan said the adoption of generic listing standards will likely lead to "a ton of new crypto" ETFs, including index offerings, citing the effect of generic listing standards on ETFs based on traditional assets.

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"Before the adoption of the ETF Rule, the ETF industry brought on average 117 new ETFs to market each year. Since the ETF Rule went into place, that’s more than tripled to 370 per year," he said.

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Still, Hougan cautioned that more cryptocurrency ETFs would not necessarily mean higher cryptocurrency prices, as inflows depend on fundamentals. He noted that Ethereum ETFs only gained traction after stablecoins started attracting interest in April, despite launching a year earlier.

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But he said ETFs will make it easier for cryptocurrencies to "rip" when fundamentals align.

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ETFs are highly sought after by cryptocurrency community members as they provide an on-ramp for the average investor and institutional investors who control most of the world’s capital.

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So far, however, the available spot cryptocurrency ETFs available in the U.S. are based on Bitcoin and Ethereum alone.

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SoSoValue data as of Wednesday shows Bitcoin ETFs have attracted $57.33 billion in net inflows since launching in January 2024. On the other hand, Ethereum ETFs have drawn nearly $13.66 billion since launching in July 2024.

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These inflows have significantly contributed to their run to new price records this year.

"The SEC adopting generic listing standards is a ‘coming of age' moment for crypto, a signal that we've reached the big leagues. But it's also just the beginning," Hougan said.

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This article 'Get Ready For Crypto's ETPalooza' As SEC Preps Crypto Listing Standards, Bitwise Investment Chief Says originally appeared on Benzinga.com

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