- The SEC reduced the approval window for crypto ETFs from 240 days to 75 days.
- Exchanges can list altcoin-based ETFs, including SOL, XRP, and DOGE, once demands are met.
- The Altcoin Index climbed to 73, showing rotation from BTC toward alternative assets.
The Securities and Exchange Commission (SEC) has voted to approve proposed rule changes by three national securities exchanges. These changes allow Nasdaq, NYSE Arca, and Cboe to adopt generic listing standards for exchange-traded products (ETPs) that hold spot commodities, including digital assets.
Under the rule, exchanges can now list and trade commodity-based trust shares that meet the standards, without filing individual applications under Section 19(b) of the Exchange Act. With this move, the process of bringing crypto-based ETPs to U.S. markets can be achieved faster.
SEC Approval and Framework
SEC Chairman Paul S. Atkins stated that the approval ensures U.S. markets remain “the best place in the world to engage in the cutting-edge innovation of digital assets.” He added that the move maximizes investor choice and fosters innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets.
The new framework requires strict eligibility for issuers. An ETP’s underlying commodity or digital asset must meet standards of market structure, pricing transparency, and surveillance. Once investors are safeguarded, exchanges could guarantee disclosures, liquidity, and oversight.
Previously, the SEC reviewed each spot crypto ETF filing on a case-by-case basis, and the process comprised two filings – first from the exchange and another from the asset manager. By undertaking the dual method, the approvals got delayed, even to 240 days, and sometimes beyond. However, the timeline has been reduced to 75 days. Teddy Fusaro, president of Bitwise Asset Management, termed the decision a ‘watershed moment’, citing that it had overturned more than a decade of precedent since the first Bitcoin ETF filing in 2013.
Market Implications and New Listings
The first products expected to benefit are those tracking altcoins beyond Bitcoin and Ethereum. Assets such as Solana (SOL), XRP, and Dogecoin may qualify once futures markets, surveillance, and liquidity standards are satisfied.
Still, analysts caution that not every crypto ETP will qualify under the new framework. Products lacking sufficient trading history, liquidity, or surveillance arrangements must continue with traditional review procedures.
The SEC also cleared other listings under the revised regime. The Grayscale Digital Large Cap Fund, which holds spot assets, also received approval. The faster path is expected to reshape competition among major exchanges. Nasdaq, NYSE Arca, and Cboe will now compete on speed and compliance to bring multi-asset ETPs to market.
Related: SEC-Gemini Agreement Signals New Path for Crypto Yield Products
Investor Sentiment and Altcoin Season
The decision arrives as traders question whether streamlined approvals will accelerate a broader altcoin season. According to CoinMarketCap, the Altcoin Season Index surged to 73 from 65 and had reportedly stood at 45 last month.
Data shows the altcoin market cap grew through early September and peaked mid-month as the index neared current levels, signaling consistent momentum toward alternative tokens. Previous values show a yearly high of 87 on December 4, 2024, compared with a low of 12 during Bitcoin Season on April 26, 2025. Analysts pointed out that the mark above 70 incurs investor attention, driven by liquidity and trading activity.
