Cboe BZX and NYSE Arca propose new SEC listing standards to streamline crypto ETF approvals
Quick Take Under current rules, exchanges must file a 19b-4 form, triggering a review period of up to 240 days. The earliest approval or disapproval for the standards could be in about 21 days or at the latest 240 days, a Cboe spokesperson said.
Cboe BZX Exchange and NYSE Arca, Inc. proposed listing standards for crypto exchange-traded funds in a bid to expedite the process for public trading.
In a filing made to the U.S. Securities and Exchange Commission on Wednesday, Cboe BZX asked the agency to change a rule to "permit the generic listing and trading of Commodity-Based Trust Shares that meet the requirements set forth in proposed Rule 14.11(e)(4)." That rule governs the trading and listing of commodity-based trust shares and has specific requirements to have certain shares listed on the exchange.
"Cboe just filed 19b-4 requesting a rule change which would allow crypto ETFs to list & trade under a standard framework," Nate Geraci, president of NovaDius Wealth, said in a post on X on Wednesday. "In other words, issuers wouldn’t have to request specific approval for each crypto ETF as long as it meets certain criteria."
Under current rules, exchanges must file a 19b-4 form, triggering a review period of up to 240 days. The proposed framework could reduce that timeline. If the SEC approves the exchange's generic listing standards, that would allow the listing and trading of crypto exchange-traded products that meet those standards without the 19b-4 form requirement, a Cboe spokesperson said.
The spokesperson also said the proposed standard doesn't currently assess a quantitative listing standard, like the size of the cryptocurrency, but said they plan to do so later.
"Following SEC guidance, we plan to separately amend the proposed generic listing standards to include a quantitative initial listing standard after adoption of these generic standards," the spokesperson said.
Next, the earliest approval or disapproval for the standards could be in about 21 days or at the latest 240 days, the spokesperson said.
NYSE Arca, Inc., also filed a rule change on Wednesday proposing generic listing and trading standards.
"The Exchange believes that the proposed generic listing standards for Commodity-Based Trust Shares would facilitate the efficient listing of such products by significantly reducing the time frame and costs associated with bringing these securities to market, which would in turn promote market competition among issuers of such products, to the benefit of the investing public," the exchange said in the filing.
The SEC is currently flooded with proposals to list crypto ETFs from ones tracking SOL to XRP to DOGE. Firms filed those proposals as President Donald Trump stepped into office in January in an expected friendlier regulatory environment for crypto.
On Tuesday, the SEC approved in-kind redemptions for both spot bitcoin and Ethereum ETFs and increased option limits for bitcoin funds. Ahead of the SEC's approvals for spot bitcoin ETFs over a year ago, firms were hashing out technical details over how the redemption process would work for such products. The SEC favored a cash model that required firms to move bitcoin out of storage, sell it right away, and then give the cash back to the investor.
Updated at 8:05 p.m. UTC on July 30 to include filing from NYSE Arca
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CoreWeave default probability exceeds 60%! Jensen Huang "puts out the fire": Financing costs are declining, no need for NVIDIA to backstop
After Jensen Huang's speech, CoreWeave's stock price, which had fallen by as much as 9.5% in early trading, turned positive. The company's five-year CDS rose above 1,190 basis points during Thursday’s session, a historical high reflecting the cost of debt default protection, while yields on some of its corporate bonds have climbed above 15% to 16%. The five-year CDS spreads for Oracle, Amazon, Google’s parent company, and Meta are all at historically high levels. Deutsche Bank analysts believe that as the AI capital expenditure cycle is increasingly supported by debt rather than free cash flow, investors must place greater emphasis on signals from the credit market. Overall, while AI-related financing costs are not yet excessively high, worrying signs have begun to emerge.
Bitcoin volatility trends show Bitcoin is less volatile than 57% of S&P 500 stocks
Wall Street is wary of Bessent making another move to suppress yields; key clues may emerge this Friday
This Friday, major primary dealers of government bonds will receive the U.S. Treasury's routine survey before the refinancing announcement is released. Citigroup expects the survey may hint at a reduction in long-term bond issuance, or even the cancellation of 20-year U.S. Treasury bonds. Morgan Stanley emphasizes: "The next two refinancing announcements will be crucial, especially the one in November, which comes right after the midterm elections."
Risk aversion outweighs inflation concerns, US and European government bonds rise across the board, US Treasury yields plunge more than 10 basis points intraday
Investors concerned about rising inflation are shifting their focus to the potential impact of high borrowing costs on economic growth. Some commentators have linked the recent decline in U.S. Treasury yields to surging financing costs for AI-related companies, suggesting that pressure in the technology stocks and AI infrastructure sectors is driving funds toward safe-haven assets such as government bonds.
Crypto prices
More
