U.S. SEC lowered the threshold… "Large-scale launch of crypto asset ETPs expected next year"

The easing of listing standards by U.S. securities authorities has led to forecasts that the launch of crypto asset exchange-traded products (ETPs) will sharply increase next year. Analysts say the product lineup could rapidly diversify as altcoins and index-type products, beyond Bitcoin and Ethereum, enter the market at once.

On the 17th (local time), Cointelegraph reported that Bitwise researcher Ryan Rasmussen said in a Bankless podcast interview, "From now on it will accelerate at an unbelievable pace," adding, "I expect more than 100 crypto-linked ETPs to be launched next year alone." He added that the offerings would include not only spot crypto assets but also index, equity-linked, smart beta, and momentum strategy products.

The background for this outlook is the generic listing standards the U.S. Securities and Exchange Commission (SEC) published in October last year. Under that guidance, crypto ETPs that meet certain requirements can be listed without individual 19(b) approval procedures, and the waiting period that used to be up to 240 days has effectively disappeared.

Rasmussen said, "It's a kind of playbook that an asset can list an ETP if it meets certain standards," adding, "From an investor's perspective, the choices greatly increase." He compared it to a restaurant that used to have only a few menu items, saying, "Now an ETP market with an extensive menu like The Cheesecake Factory will open."

In the market, there are expectations that additional crypto ETP launches could have a positive effect on the altcoin market. Bitfinex analysts previously analyzed that a full-scale rally of altcoins may be limited until ETFs beyond major crypto assets are approved. Rasmussen also suggested that the product structure, which had been concentrated on Bitcoin (BTC) and Ethereum (ETH), could gradually expand.

In fact, the number of crypto ETPs is already increasing rapidly. According to Fineqia International, the number of crypto ETPs listed worldwide currently exceeds 300. Bloomberg ETF analyst James Seyffart also said in September last year, "This policy change could lead to a wave of spot crypto ETP launches."

A similar view comes from academia. Seoyoung Kim, associate professor of finance at the Leavey School of Business, Santa Clara University, told Cointelegraph, "There may be greater benefits to crypto asset products other than Bitcoin and Ethereum, which are already established in the institutional framework," adding, "The time it takes to get approval could be shortened from years to months." She added, however, that existing ETF listing and trading requirements still apply.