SEC Approves 'Generic Listing Standards,' Paving the Way for an Explosion of Crypto Spot ETFs

On September 17, the U.S. SEC officially adopted the “Generic Listing Standards for Commodity-Based Trust Shares” (Release No. 34-103995). This is not a mere technical document but a true “institutional gatekeeper”—This means that the listing of future crypto spot ETFs will shift from case-by-case approvals to a standardized, expedited generic process.

Against the backdrop of the Federal Reserve’s new rate-cut cycle and rising expectations of dollar depreciation, this regulatory breakthrough brings a “liquidity + institutionalization” double resonance to digital assets, making it one of the most significant regulatory events in the crypto market this year.

In this article, we will address the following questions:

What exactly has the new rule changed, and what are its implications?

Which cryptocurrencies will benefit first, and which spot ETFs are most likely to gain early approval?

What should investors pay attention to? In light of the new rule and shifting capital flows, how can ordinary investors seize opportunities while managing risks?

I. What Has the Generic Standard Changed? From “Whether to Permit” to “How to Regulate.”

Before this new regulation, crypto spot ETFs had to go through a case-by-case approval process, requiring them to clear two hurdles:

19b-4 rule change approval — Submitted by the exchange to the SEC to amend exchange rules. This is a substantive review and could be rejected by the SEC.

S-1 registration statement approval — Submitted by the ETF issuer for SEC review, disclosing fund structure, manager, fees, and other details. This is more of a formal review.

This dual-approval process was not only lengthy but also often delayed by political issues and compliance disputes. For example, during the Bitcoin spot ETF wave in 2021, many applications were filed, but throughout 2021–2022, all were denied at the 19b-4 stage. From May to July 2023, a new round of applications was submitted, but it was only on January 10, 2024, that both the 19b-4 and S-1 filings were approved simultaneously—after nearly 8 months.

SEC Approves 'Generic Listing Standards': Crypto Spot ETFs Enter the Fast Lane

The “generic listing standards” adopted by the SEC on September 17, 2025, bring a fundamental shift. The standard specifies: commodity ETFs that meet the criteria no longer need to submit 19b-4 applications on a case-by-case basis; they only need to go through the S-1 approval process. This greatly reduces both approval time and cost.

To qualify, an ETF must meet one of the following three pathways:

The underlying commodity is traded on an ISG (Intermarket Surveillance Group) member market, such as NYSE, Nasdaq, CME, or LSE.

The underlying commodity’s futures contract has been traded on a DCM (Designated Contract Market) for at least six consecutive months, and the exchanges have established a Comprehensive Surveillance Sharing Agreement (CSSA). DCMs are CFTC-regulated exchanges, such as CME, CBOT, or Coinbase Derivatives Exchange.

An ETF is already listed on a U.S. national securities exchange, with at least 40% of its assets allocated to the underlying commodity.

Since most crypto assets are categorized as “commodities,” this rule is almost tailor-made for crypto spot ETFs. Among the three paths, the second is the most feasible: as long as a crypto asset has a futures contract traded on CME or Coinbase Derivatives for six months, it can bypass the 19b-4 approval step, and its spot ETF is likely to be launched quickly.

Figure 1: New vs. Old Approval Process for Crypto Spot ETF Listings (Source: SoSoValue)

Compared with the old model, the changes brought by the new regulation are mainly reflected in two aspects:

Simplified approval path: 19b-4 is no longer a roadblock. Under the old model, crypto spot ETFs had to go through both the 19b-4 rule change and the S-1 registration statement approval—neither could be skipped. That was the case for Bitcoin and Ethereum ETFs in the past: the 19b-4 review period lasted up to 240 days, becoming the key factor slowing down the process. Under the new regulation, as long as the product meets unified standards, the exchange can go directly through the S-1 approval process, bypassing the repeated back-and-forth of 19b-4, thus significantly shortening the listing cycle.

Shift in regulatory focus: CFTC and DCMs play a more critical role. The eligibility review of futures contracts is gradually shifting from the SEC to DCMs (Designated Contract Markets) and the CFTC (U.S. Commodity Futures Trading Commission). Under the current framework, there are two main ways for a DCM to launch a new contract:

Self-Certification: The DCM only needs to submit a self-certification to the CFTC one business day before the contract goes live. If the CFTC raises no objection, the contract automatically becomes effective. This usually requires that the spot market demonstrate price transparency, sufficient liquidity, and controllable market manipulation risks.

Voluntary Approval: If a contract is controversial, the DCM can proactively seek CFTC approval to obtain stronger legal protection.

This means that as long as the spot market of a given crypto asset is healthy enough, the DCM has significant autonomy to promote its futures listing. Meanwhile, the SEC’s review of the S-1 focuses mainly on whether disclosures are adequate and whether the product structure is compliant, making it more of a procedural review.

Overall, the SEC is transitioning from a case-by-case approver to a rule-setter. Its regulatory stance is shifting from “whether to allow” to “how to regulate.” Within this framework, the rollout of crypto spot ETFs will become more efficient and standardized.

II. Which Cryptocurrencies Are Most Likely to Benefit? Ten major tokens with existing futures contracts and submitted ETF applications will be the first to see ETF launches.

Among the existing DCMs (Designated Contract Markets), Coinbase’s Coinbase Derivatives Exchange has the most comprehensive lineup of crypto futures products, currently covering 14 different cryptocurrencies (see Figure 2).

Figure 2: List of Futures Already Listed on Coinbase (Source: SoSoValue)

According to SoSoValue data, there are currently 35 crypto spot ETFs awaiting approval, covering 13 different tokens. With the exception of SUI, TRX, and JitoSOL, the other 10 tokens have already had futures listed on the Coinbase Derivatives Exchange for over six months, and therefore fully meet the generic requirements under the new regulation.

Figure 3: Ten major tokens with existing futures contracts and submitted ETF applications will be the first to see ETF launches(Source: SoSoValue)

This means:

Roughly 30 spot ETFs covering 10 tokens — LTC, SOL, XRP, DOGE, ADA, DOT, HBAR, AVAX, LINK, and BCH — are likely to receive rapid approval in the coming weeks or months.

The market is brewing for the next wave of ETF “explosive growth.” For example, although XLM and SHIB already have futures, no spot ETF applications have been filed so far, making them very likely to become the next key targets for asset managers.

III. When the Rate-Cut Cycle Meets the ETF Boom, What Should Investors Watch? ETF issuance progress, macro interest rate trends, cross-asset allocation, and capital flows.

In the short term, the implementation of the generic standard will significantly accelerate the pace of crypto ETF launches, lower issuance barriers, and attract more institutional capital and compliant products into the market.

At the same time, on Thursday the Federal Reserve cut rates by 25 basis points as expected. The dot plot signaled two more cuts this year, marking the beginning of the rate-cut cycle. Expectations of a weaker dollar are starting to build, and global capital is searching for new asset anchors.

Two powerful forces are now colliding head-on: on one side, massive liquidity being released by the U.S. dollar system; on the other hand, a potential surge in crypto asset ETFs. Their interplay may reshape capital allocation logic, accelerate the deep integration between traditional capital markets and crypto assets, and possibly mark the starting point of a redrawn global asset map for the next decade.

Against this backdrop, investors should focus on four key areas:

ETF Issuance Pace: For crypto spot ETFs that qualify under the generic standard, the S-1 filing is usually updated multiple times before final approval to include details such as fees and initial issuance size. These updates often signal that the product is in the “countdown” stage before listing.

Macro Environment: The Fed’s interest rate path, dot plot expectations, and the trajectory of the U.S. dollar index will determine shifts in risk appetite, serving as core clues for asset pricing.

Figure 4: Fed Rate-Cut Path Expectations (Source: SoSoValue)

Cross-Asset Allocation: During periods of dollar weakness, gold, commodities, and crypto assets often serve as complementary assets. By diversifying exposure, investors can both reduce risk and capture multiple return streams.

Capital Flows: Compared with price fluctuations, the daily net inflows of ETFs provide a clearer reflection of market sentiment and trends. They are often more forward-looking, helping investors seize opportunities ahead of market reversals.

Figure 5: Daily Net Inflows of Bitcoin Spot ETFs (Source: SoSoValue)

Figure 6: Daily Net Inflows of Ethereum Spot ETFs (Source: SoSoValue)

In summary, the new regulation combined with the rate-cut cycle is opening a “dual gateway” of regulation and liquidity for crypto ETFs. For investors, this represents not only a new window of opportunity but also a profound reshaping of asset allocation logic.