SEC listing rules reform, potential expansion of crypto ETFs… Bitwise "No guarantee of capital inflows"

The U.S. Securities and Exchange Commission (SEC) simplifying the listing procedures for crypto exchange-traded products (ETPs) could increase the number of new product launches, but it may not necessarily result in capital inflows.

On the 17th (local time), Cointelegraph reported that Matt Hogan, Chief Investment Officer at Bitwise, said, "General listing standards could be applied from October, which would promote the launch of many new crypto ETPs," while adding, "their mere existence does not mean capital will flow in, and there needs to be fundamental demand for the underlying assets." He added, "Asset-based ETPs like Bitcoin Cash will find it difficult to secure capital inflows unless those assets find renewed vitality."

Hogan emphasized that ETF launches could increase investment accessibility and support an upswing if market fundamentals improve. Catalin Tishhauser, head of Signum Research, also pointed out, "There is excessive expectation surrounding ETF launches, but it is unclear where the actual demand will come from."

The SEC currently reviews crypto ETF applications individually and requires proof of liquidity and resistance to market manipulation for approval. Under the current system, approval can take up to 240 days. However, Hogan explained that under the new system, if requirements are met, the likelihood of approval would be "virtually guaranteed" and could be shortened to within 75 days.

Meanwhile, this week two ETFs tracking Ripple (XRP) and Dogecoin (DOGE) are scheduled to be listed on the U.S. market, and in July the first Solana (SOL) staking ETF drew $12 million in funds on its first day of listing, being described as a "healthy start."