Chicago Options Exchange’s Cboe BZX and NYSE Arca Propose Cryptocurrency ETF Listing Standards
The Chicago Options Exchange’s Cboe BZX and the all-electronic exchange NYSE Arca have proposed a set of cryptocurrency ETF listing standards aimed at accelerating the process for these products to enter the public trading market.
According to the application documents submitted to the U.S. Securities and Exchange Commission (SEC) on Wednesday, Cboe BZX is requesting a rule modification to allow “commodity trust shares that meet the proposed requirements of Rule 14.11(e)(4)” to be listed and traded under general rules. This rule specifically governs the listing and trading of commodity trust shares and sets specific requirements on which shares can be listed on the exchange.
Nate Geraci, president of NovaDius Wealth, stated on the social platform X on Wednesday: “Under current regulations, exchanges must submit a 19b-4 form and initiate a review process that can last up to 240 days for a cryptocurrency ETF to be listed. If the SEC approves the general listing standards proposed by Cboe, cryptocurrency ETFs meeting these standards will not need to submit a 19b-4 form to be listed, significantly shortening the listing process.”
A Cboe spokesperson noted that the proposed standards do not currently cover quantitative listing conditions, such as the market capitalization of cryptocurrencies, but there are plans to include such requirements in the future. The spokesperson indicated that this new standard could be approved or rejected in as soon as about 21 days, but it could take up to 240 days at the latest.
NYSE Arca also submitted a rule change proposal on Wednesday, suggesting the establishment of universal listing and trading standards. The exchange stated in its documents that they believe the proposed general listing standards for commodity trust shares will significantly reduce the time and cost required for product listings, facilitating the efficient launch of these products and enhancing market competition among issuers, ultimately benefiting the investing public.
Bloomberg ETF analyst Eric Balchunas added that under the newly proposed listing standards, as long as a particular cryptocurrency has had futures contracts listed on a “designated contract market” (such as Coinbase’s derivatives exchange) for six months, that cryptocurrency will have the opportunity to directly qualify for ETF listing. He pointed out that there are currently about a dozen cryptocurrencies meeting such conditions, and they previously estimated that the probability of these related fund products being approved is over 85%. Balchunas believes that these funds are likely to be launched in September or October of this year, with the only variable being when the SEC will grant approval.
Related report: “Bloomberg Analyst: A ‘Summer of Altcoin ETFs’ May Be Ahead, Solana ETF Expected to Be Approved First”
Source: X
The SEC is currently reviewing a large number of cryptocurrency ETF listing proposals, covering fund products tracking SOL, XRP, and Dogecoin (DOGE). Most of these applications were submitted after President Trump took office this January, when the market widely expected the new administration to bring a more favorable regulatory environment for the cryptocurrency industry.