The new rules for crypto ETFs that took effect in September 2025 are a significant event for the entire industry. Previously, launching funds was like running an obstacle course, with endless checks and rejections from the SEC. Now, however, the regulator is finally offering clearer steps and promising to simplify the procedure. This makes the market much more accessible for issuers and investors alike.

The SEC’s 2025 generic listing standards initiative should speed up the approval process for assets under review and pave the way for new ones. Tokens other than Bitcoin and Ethereum now have a much better chance of being approved.

Let’s review the history of crypto ETFs in the U.S., the changes that have occurred, and the opportunities that will arise in the future.

The history of crypto ETF regulation in the US

The road to the emergence of the first cryptocurrency funds in the United States was long and nerve-wracking. Since 2013, companies have tried to get SEC approval to launch spot crypto ETFs, but they have consistently been rejected for no objective reason. The regulator cited abstract risks of manipulation, lack of transparency, and high market volatility.

One of the most notable cases was the Bitcoin ETF application from the Winklevoss brothers, founders of the Gemini exchange. They submitted their application in 2013 but received a final rejection four years later. This was just one of dozens of examples of the SEC delaying decisions or finding new reasons to block funds. The brothers repeatedly modified and resubmitted the application in an attempt to meet the SEC’s requirements. In 2018, they submitted a second version, which was also rejected by the SEC for similar reasons: low liquidity, weak control infrastructure, and insufficient investor protection guarantees.

In summary, the main feature of the old systеm for more than 10 years was its ability to reject any initiatives related to cryptocurrencies. This made launching funds incredibly time-consuming and usually pointless from a business perspective.

New rules for crypto ETFs

In September 2025, the SEC simplified the requirements for launching new crypto ETFs. The market hopes that this is not just another case of much ado about nothing but rather a measure that will benefit the crypto industry. Rather than reviewing each application individually, there is now a generic listing standard initiative for cryptocurrencies, a kind of general template. If an asset meets these conditions, the exchange can launch a new ETF without undergoing a lengthy bureaucratic process.

The turning point came with the arrival of the new SEC chief, Paul Atkins, who replaced Gary Gensler, an experienced bureaucrat. While under Gensler, the SEC resembled a machine for rejecting applications, Atkins came in with a different philosophy. He demonstrated that the SEC could control and regulate the market while also helping it grow. Under his leadership, the regulator permitted simplified listing and approved new standards, paving the way for the expansion of the range of crypto ETFs.

In practice, this means that

The SEC’s new standards essentially provide a clear answer to how a token can become part of an ETF: it must meet the criteria of transparent trading (ideally with futures) and liquidity.

The token must meet at least one of the three criteria for listing ETF assets:

• Transparent trading. When an asset is traded on an exchange that belongs to the Intermarket Surveillance Group (ISG), its market is already being monitored, and the data can be tracked. This reduces the risk of manipulation. The ISG is an international association of exchanges and regulators that share information about trading activity to help identify manipulation and suspicious transactions. Under these standards, exchanges such as the NYSE and Nasdaq can now launch new spot ETFs immediately. Previously, they had to submit two sets of documents: one from the exchange and one from the management company. There is now less bureaucracy, and ETF listings are speeding up.
• The existence of futures contracts is important. If an asset has a futures contract that is officially traded and regulated by the CFTC and has been in existence for at least six months, it is considered more reliable because it has a history. 
• Have experience working with ETFs. If an asset is used in other funds, it is considered proof of its liquidity and demand.

Generally, if none of the three conditions are met, companies must follow the old process, which includes an individual application and a lengthy approval process.

Another important innovation is the expansion of the in-kind format. With in-kind crypto ETFs, the fund can directly accept or return cryptocurrency without buying or selling it through the market. For investors, this means lower fees and taxes and faster transactions. This innovation allows the fund to work directly with cryptocurrency. For instance, if an institutional investor wants shares of an ETF, they transfer cryptocurrency (e.g., bitcoins or ether) directly to the fund instead of money. In exchange, they receive ETF shares. When redeeming, the process is reversed: the investor returns the shares and receives the cryptocurrency back. This approach avoids unnecessary market conversions, reduces commission costs, and lowers the tax burden. Additionally, in-kind investing increases fund efficiency: funds don’t spend time and money buying assets on exchanges, and investors get a more transparent cost structure.

The cherry on top is the reduced waiting time. The process, which used to take an average of 240 days, is now reduced to 75 days with the adoption of new standards. 

Expansion of the asset range

Until recently, the approval of spot ETFs in the US only concerned two major cryptocurrencies: Bitcoin and Ether. Other tokens were sidelined due to strict SEC restrictions. Now, with the introduction of new rules, the market has an opportunity to expand the list of assets included in crypto ETFs.

First and foremost, this applies to Solana and XRP. These projects have long been among the top ten cryptocurrencies by market capitalization and have large communities. If they are deemed suitable under the new standards, approvals for Solana and XRP ETFs will follow, marking a significant milestone for the entire market.

Analysts have also discussed other tokens, such as Cardano (ADA) and Avalanche (AVAX), in addition to these. These tokens also have a good chance if they can prove their liquidity and trading transparency.

However, the SEC has created barriers for memecoins and new tokens. While the process has been simplified, the rules filter the market, allowing only stable assets to be included in the funds.

Advantages of the new rules

Previously, the SEC’s conditions for admitting assets to ETFs resembled a never-ending bureaucratic quest. Now, the process is clearer and faster.

• ETFs can enter the market more quickly. Whereas the process previously took months (and sometimes years) for approvals, crypto ETF approval in the US now takes significantly less time. Issuers can respond quickly to demand and launch products without years of delays.
• There is greater product diversity. Funds are being launched not only for Bitcoin or Ether but also for other major tokens that meet the SEC’s requirements for inclusion in crypto ETFs. This paves the way for ETFs that cover entire baskets of cryptocurrencies. 
• There is growing interest from institutional investors. Large funds, banks, and management companies have historically been cautious about the crypto market. New protective rules for cryptocurrency ETFs make them more appealing to institutional investors. 

Risks and challenges 

While the new SEC rules generally have a positive impact on crypto funds, the market is still far from cloudless. 

• Cryptocurrency volatility. Even the most reliable tokens can have extremely volatile prices. Unlike gold or traditional stocks, cryptocurrency values can fluctuate by tens of percent in a short period of time. For ETF investors, this means that, despite transparent rules, risks remain high.
• There is potential for manipulation. Although the new rules for trading ETFs on digital assets make the market more regulated, it is impossible to completely eliminate manipulation. Here, everything depends on how effectively exchanges can control trading. The less liquid an asset is, the higher the chance of manipulation.
• Vague regulation. Although the SEC has simplified the procedure, other regulators, including Congress and the CFTC, may introduce amendments. Oversight of digital asset ETFs continues to evolve, so it’s possible the rules will tighten or clarify in the coming years. For businesses, this means constantly adapting to new conditions.

What does this mean for investors?

For investors, the new rules primarily mean greater choice. Whereas Bitcoin and Ethereum were previously the only options, the range of available funds will now be broader, and products for other popular assets will appear.

With increased competition, investors will base their choices not only on the assets within the fund but also on the fund’s terms — commissions, the reliability of the management company, and additional services. Investors will therefore have more options for diversification and will be able to sеlect ETFs for different strategies.

Therefore, it will be important to carefully sеlect a fund by comparing its commissions, the reputation of its management company, and the volume of its assets under management. BlackRock’s ETFs, for example, often win out due to their scale and the trust they have earned from institutional investors. However, a product from a lesser-known issuer may offer low commissions but not provide the same liquidity and stability.

Analysts expect the approval process and requirements for crypto ETFs in the U.S. to continue easing and competition among issuers to intensify. This will trigger a race for investor attention, and the competitive situation will intensify. Some will attract investors with lower fees, while others will rely on their brand or unique products. BlackRock and Fidelity, for example, have already acquired more than $500 million in Ethereum through their ETFs. Meanwhile, ARK Invest abandoned its partnership with 21Shares to launch a spot Ethereum ETF, citing high competition in the market and a desire to focus on other strategies. This underscores the fact that competition between funds will be no less important than competition between the assets themselves.

FAQ — Frequently Asked Questions

What are “generic listing standards” and how do they change the crypto ETF approval process?

These are the new SEC rules that establish uniform requirements for fund listings. Thanks to these rules, the process of listing crypto ETFs has become faster and more transparent without unnecessary bureaucracy.

Which assets can now be included in crypto ETFs under the new rules?

Solana and XRP remain the main candidates — they have high liquidity and developed infrastructure. However, niche DeFi tokens and meme coins do not yet meet the trading volume and transparency requirements, so their future as crypto ETFs under the new rules remains uncertain.

How does the time it takes to list an ETF under the new standards compare to the old ones?

In short, while approval could take years under Gensler, the time for approving crypto ETFs in the US has now been reduced to a few months, and in some cases, weeks.

What does “in-kind” creation and redemption of funds mean, and why is it important for ETFs?

It is a process in which investors exchange cryptocurrency directly for ETF shares, and vice versa. Unlike the fiat format, where you first need to buy or sell an asset for money, in-kind allows you to avoid unnecessary transactions and save money.

Conclusion

The new crypto ETF rules in the US are changing the game radically. While fund approvals previously took years, the process is now quick and transparent, and the list of eligible assets is broader. For investors, this means more options and greater competition among funds. For the market, it is a step towards maturity. The key now is to seize the moment and sеlect the right products.

Currently, the regulator has approved Bitcoin and Ethereum ETFs, which have launched and are operating. Expected and actively discussed funds inсlude applications for Solana, XRP, Dogecoin, Litecoin, Cardano, and Avalanche. Thanks to the new standards, these assets have a significantly higher chance of being approved, and the first decisions could come as early as this fall. 

Thank you for your attention. Invest safely and profitably!

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