Cboe Files for New Generic Listing Standards for Crypto ETPs
- The move could make a big difference for fund issuers.
- The crypto industry is eagerly awaiting approvals on crypto-related ETPs.
The Chicago Board Options Exchange filed for Generic Listing Standards for crypto exchange-traded products on Wednesday—a move that could make a big difference for fund issuers.
If the filing is approved, any coin that has futures tracking it for at least six months on Coinbase's derivatives exchange would be approved, Bloomberg Senior ETF Analyst Eric Balchunas said via X.
The filing is still subject to comment and review, but could be on a path to finality in less than 60 days, Greg Xethalis, general counsel at crypto investing firm Multicoin Capital, said in a post on X. He added that the New York Stock Exchange and Nasdaq exchange will likely follow in the footsteps of Cboe shortly.
What the Generic Listing Standards Could Mean
“The new rule allows an issuer's shares to be listed on an exchange if the underlying commodity to which exposure is given has a contract on a Designated Contract Market for at least 6 months,” Xethalis said.
It would also make the possibility of staking—a process in which crypto investors can earn rewards for their transactions—easier via a rule that would require a liquidity risk management program if less than 85% of the assets are available for immediate redemption, per the filing.
Solana ETPs, which must be approved by Oct. 10, would qualify this fall under the Generic Listing Standards if they’re approved by the agency, Xethalis said.
The SEC Is Sitting on Crypto ETP Applications
The crypto industry is eagerly awaiting approvals on crypto-related exchange-traded products.
“People have to be patient,” SEC Commissioner Hester Peirce recently said in an interview with Bloomberg’s Trillions podcast.
“The SEC could choose to act directly on those ETP 19b-4s before the Oct. 10 Solana deadline and the slightly later XRP deadline, or could run these out under GLS,” Xethalis said.
Balchunas said that the process of launching ETFs related to newer alt coins that don’t have futures or meme coins would need to come from a different structure.
