The United States Securities and Exchange Commission (SEC) has reportedly requested that would-be issuers withdraw their 19b-4 filings for XRP, Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Litecoin (LTC) exchange-traded funds (ETFs).
Big Move For Spot-Based Altcoin ETFs
According to Crypto America journalist Eleanor Terrett, issuers will start withdrawing their 19b-4 filings as early as this week, suggesting it could only be a matter of time until such altcoin ETFs make their Wall Street debut.
This move comes as the SEC has taken steps toward shortening the timelines amid a more lenient approach to crypto. The regulator recently approved a set of rules for exchanges to list exchange-traded products (ETPs) holding spot commodities, including cryptocurrencies, without requiring the agency’s individual review each time.
These new generic listing standards eliminate the need for individual 19b-4 applications that were previously mandatory for each crypto ETF proposal under Section 19(b) of the Securities Exchange Act of 1934.
The 19(b) rule filing process is usually lengthy and can take up to 240 days. But the updated framework could shorten the path to launching future spot crypto ETFs. As such, if the proposed offering (token or combination of tokens) of the issuers satisfies the generic listing standard, then the exchange can proceed with listing the exchange-traded fund at a much faster pace.
Since the change in listing standards, the SEC greenlighted the Grayscale Digital Large Cap Fund, which tracks the prices of Bitcoin, Ether, XRP, Solana, and Cardano. The agency also signed off on asset manager Hashdex’s proposal to expand its crypto ETF index to include XRP, Solana, and Stellar.
Industry analysts had predicted earlier that the new listing standard would spark a new wave of spot crypto ETF launches with fewer regulatory delays.
