What to Know:
- •SEC accelerates ETF approvals for major cryptocurrencies under new standards.
- •Fast approval impacts Solana, Ripple, Cardano, Dogecoin, Litecoin.
- •Market volatility expected around these cryptocurrencies post-approval.
The U.S. Securities and Exchange Commission has prompted issuers to withdraw 19b-4 filings, expediting spot crypto ETF approvals for cryptocurrencies like Solana, Ripple, Cardano, reported on November 2023.
This shift promises reduced approval times and increased market activity for major altcoins, potentially altering ETF provisions and institutional crypto interactions.
SEC Alters Requirements for Spot ETFs
The SEC's request removes previous regulatory barriers by adopting new listing standards. This accelerates the approval of spot ETFs for several cryptocurrencies.
The SEC targeted issuers with spot ETFs tied to Solana, Ripple, Cardano, Dogecoin, and Litecoin, urging them to prepare for expedited approvals.
Market Volatility Anticipated Post-Approval
Immediate market reactions involve significant volatility expectations as stakeholders anticipate approvals. The move signifies increased institutional interest in crypto sectors.
Financial markets view the SEC's action as likely lowering costs and time-to-market. This could result in strategic shifts by asset managers and investors.
Spot Bitcoin ETFs: A Precedent for Altcoins
Previous approval of spot Bitcoin ETFs led to market volume surges. Similar patterns could follow for the newly targeted altcoins.
Based on historical data, increased on-chain activity and market volume are expected for tokens like Solana and Ripple, indicating potential future market impacts.
James Seyffart, ETF Analyst, Bloomberg Intelligence, "The SEC can move absurdly fast if they really want to—as we've seen in the past. Meaning that we could see approvals in a matter of days. But there’s no guarantee of that..." – Bloomberg