US Securities and Exchange Commission (SEK) has cleared a path for a flooding of new crypto exchange products to hit the market, says a relocation analyst who could reshape how money flows into digital assets.
On Wednesday, the Agency approved generic listing standards for “Commodity-Based Trust shares” across regulated exchanges NASDAQ, CBOE BZX and NYSE ARCA.
Read more: SEC MAKE SPOT CRYPTO ETF listing process easier, approves Grayscales Store Cap Crypto Fund
The new rules remove the need for each crypto ETP to review its own individual rule archiving according to section 19(b) of the Exchange Act. Instead of meeting an offer whose underlying assets meet certain objective eligibility tests – for example, if crypto is trading in a market that is a member of the Intermarket Surveillance Group (ISG)Or if the underlying asset’s futures contract is listed on a CFTC-regulated designated contract market for at least six months can be stated using these generic standards.
What is the next?
The legislative shift marks a waters for the crypto industry and removes much of the procedural feature that has historically slowed down to get new crypto products to the market, analysts said.
“[The] Crypto Etf flooding gates are opening, “said Nate Geraci, a good subsequent ETF analyst and president of Novadius Wealth Management.
“Expect an absolute river of new archives and launches,” he said. “You may not like it, but Crypto goes mainstream via the ETF wrap.”
Matt Hougan, Chief Investment Officer for Digital Asset Management Firm and ETF issuer Bitwise said SEC’s trait is an “upcoming age” moment for crypto.
“[It’s] A signal that we have reached the great leagues, “he wrote.” But it’s also just the beginning. “
The story backs up predictions that the number of new Crypto ETF launches will accelerate under the new regime.
When SEC approved generic listing standards for bond and stock-based products in 2019, the number of ETFs launched more than tripled for one year and increased to 370 from 117 the year before, Hougan pointed out.
What does it mean for crypto prices?
Hougan warned against assuming that new crypto -TPs automatically operate large influxes. “The mere existence of a crypto ETP does not guarantee significant influx,” he wrote. “You need basic interest in the underlying asset.”
For example, take the slow start of the place ether (Eth) Etfs. They first began to collect meaningful influxes almost a year after launch when the stablecoin activity and – by extension – Ethereum’s investment counting picked up, Hougan wrote.
In contrast, products related to smaller capacity assets with less tangible use cases can fight to attract absent capital renewal, he added.
Still, he argued that ETPs dramatically lowers the barrier to traditional investors, making it much easier for institutional and retail distributors to turn in crypto when feeling. They also help demystifying cryptocurrencies for mainstream audience when names like Avalanche and chainlink appear in brokerage accounts, Hougan said.
“What we are seeing now is underlying assets further down the value basket that is rolled into these wrappings and strategies,” Paul Howard, Senior Director of Wincent told Coindesk in a note. “For institutions that cannot own the place [crypto] Directly, these vehicles provide a wrapping and move liquidity into the ecosystem. “
Tokens that are likely to benefit from this are altcoins with big capital. “Dogecoin XRP Solana Sui Aptos and others now introduce the next wave of [products] As investors look for options and applications outside Bitcoin And eth, “Howard said.
