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Two new altcoin exchange-traded funds (ETFs) linked to Dogecoin and XRP were scheduled to debut in the US this week.  This move demonstrated that the SEC has recently expanded its tolerance for cryptocurrency investment options.

 

This announcement followed fund issuer REX-Osprey’s announcement that the REX-Osprey XRP ETF would be introduced this week. These new ETFs from the US, which trade under the ticker XRPR, will be the first in history to give investors direct access to the third-largest cryptocurrency by market capitalization.

The U.S. Securities and Exchange Commission (SEC) has approved new listing requirements for trust shares that are based on commodities.

The SEC’s decision, outlined in its filing to simplify the process under Rule 6c-11, specifically impacts stock exchanges such as NYSE Arca, Cboe BZX, and Nasdaq. Importantly, this change has considerably shortened the approval period, which previously took several months.

SEC Chairman Paul Atkins stated that the primary reason for approving these general listing standards was to position the U.S. capital markets as the most favorable globally for the innovative development of digital assets. He emphasized that this approval expands investor options, fosters innovation, and streamlines the listing process by removing barriers to the availability of digital asset products in America’s stable capital markets.

This update coincides with the SEC’s ongoing review of applications for spot ETFs involving cryptocurrencies like Solana, XRP, Litecoin, and Dogecoin. The commission has deadlines beginning in October to decide on these applications. For a crypto spot ETF to be listed, it must be connected to a commodity that either trades on a market associated with the Intermarket Surveillance Group or has access to adequate surveillance.

Additionally, a proposed ETF may qualify for listing if another ETF tracks it with at least 40% exposure.

The SEC also recommends that it be listed on a national securities exchange. If an exchange wishes to list and trade Exchange-Traded Products (ETPs) that do not meet the requirements for approved generic listings, it must submit a rule proposal to the SEC.

According to analysts like James Seyffart, this shift is revolutionary for the crypto industry. Seyffart expressed that he had been eagerly awaiting this type of crypto ETP framework and anticipates a significant increase in cryptocurrency investment schemes in the U.S. following this change.