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in Yesterday’s edition Of the Forward Guidance Newsletter, Felix Jaubin broke the Fed on Wednesday Rate reduction. But it’s also important to shed light on other big things that fell on September 17th.
This will be the SEC that approves the general listing criteria for commodity-based trust stocks (also known as Crypto ETPS). This was by no means an unexpected approval as we knew that the SEC was. I’ll work through this. However, the timing seemed to surprise some people, and came a little earlier than expected.
The US Securities Regulator is a multi-asset ETP that was exposed to 90% of the crypto market shortly after lifting the “stay order” associated with Grayscale’s digital large cap fund (GDLC).
When I changed that name, the grayscale Coindesk Crypto 5 ETF hit NYSE Arca this morning. Its current holdings are as follows:
Each Tokens GDLC hotel will be considered acceptable (or soon) (or soon) under the new generic listing standards, according to Krista Lynch, senior VP of ETF capital markets at Grayscale.
“For me, it really illustrates the convergence of traditional financial and digital assets and the evolving toolkit where we now need to provide rules-based crypto products to investors,” she told me.
It takes a lot of time and money to try to launch an ETF. This all goes well if you know you have approval at the finish line. Historically, this was not the case with cryptographic ETFs. For example, the publisher failed for about ten years. For example, the Spot Bitcoin ETF. They finally got the green light in January 2024.
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However, as long as the ETP proposal meets the setup requirements, the general listing standard streamlines approval.
First off: ISG = Inter-Market Monitoring Group. DCM = Designated Contract Market. CSSA = Comprehensive Surveillance Sharing Agreement.
Galaxy Research’s associate Lucas Tcheyan said in August Report That 10 tokens (beyond BTC and ETH) met the then proposed generic list standards (Doge, BCH, LTC, Link, XLM, Avax, Shib, Dot, Sol, and HBAR). He added that ADA and XRP will soon be eligible. This is after the listing for Coinbase Derivatives (qualifying as a DCM) reaches six months.
What does this all mean on a higher level? More products, Bitwise CIOs look forward to.
Hougan told me in an email that the new standard is Bitwise’s own Crypto Index Fund, a “huge milestone that will help you clear Bitw’s pass.” The company declined to comment on the timeline of certain launches.
Hashdex also declined to comment. However, those familiar with the issue said the company was working on it. Add additional tokens Hashdex Nasdaq Crypto Index US ETF (NCIQ) “under general listing rules conditions.”
It seems that some of these products aren’t too late for many single asset Crypto ETP proposals in front of the SEC.
Those familiar with submitting the Crypto ETF told me that the SEC gave the issuer a deadline of September 26th and a deadline for making the next revision to the Solana ETF S-1S. The SEC’s decision on these proposals is expected by October 10th.
“They will also start to incorporate features such as staking that the framework explicitly allows,” Lynch said of the new Crypto ETP. “It creates the possibility of unlocking new sources of value that are meaningful for shareholders.”
Quick note above: Like US ether ETFs, staking could be enabled on some of these products on day one, an executive told me this week. Leave the latest roundtables from BlockWorks in your staking ETF here.
The Bitcoin and ether ETFs, released in January 2024 and July 2024, respectively, gave us a glimpse into what demand for pent-up looks like. The weekly crypto ETF flow peaked at $4.6 billion in mid-July due to growing interest in ETH, BlockWorks Research data show:
Just as BTC and ETH products have broken down barriers to investors (i.e. complex custody, lack of regulated vehicles), so is the coming wave of crypto ETP for other digital assets.
We know that not all Altcoin products attract the same level of demand as Bitcoin or etheric products, and are probably not even close.
“But it’s important to expand the menu of investmentable products,” Lynch said. “It will expand investor choice, drive the demand for education, drive conversations beyond Bitcoin and Ethereum, and bring to view digital assets as a diverse, integrated asset class.”
When it comes to investment, diversification tends to win.
