- CBOE filed with the SEC to create a standardized framework for crypto ETF listings.
- The proposal would cut approval times from 180+ days to 75 days.
- The SEC has 240 days to decide on this rule change.
The Chicago Board Options Exchange (CBOE) has submitted a 19b-4 filing to the Securities and Exchange Commission requesting approval for standardized crypto ETF listing procedures. The proposed rule change targets commodity-based trust shares, including spot Bitcoin ETFs and similar digital asset products.
Generic Framework Could Replace Lengthy Approval Process
Under the current system, crypto ETF issuers face approval timelines exceeding 180 days for each product. CBOE’s proposal would establish a uniform framework allowing issuers to list crypto ETFs without case-by-case SEC approval, provided they meet predetermined requirements.
The standardized approach would apply to Bitcoin ETFs and other cryptocurrency-based exchange-traded funds. Issuers could bypass the traditional, lengthy application process by adhering to the established framework guidelines.
SEC Has 240 Days to Decide on Rule Change
The Securities and Exchange Commission has up to 240 days to decide on CBOE’s filing. If approved, Bloomberg ETF analyst James Seyffart indicates the rule change could transform the ETF landscape.
Industry sources suggest the SEC is exploring options to reduce crypto ETF listing timeframes to 75 days. This would replace the current 19b-4 process that extends approval periods significantly.
The proposed changes arrive as institutional interest in cryptocurrency ETFs continues growing. Multiple Bitcoin ETF products have launched successfully, generating substantial trading volumes and investor demand.
CBOE’s initiative represents a significant step toward standardizing crypto ETF regulations. The exchange operates as a major venue for ETF trading and has extensive experience with traditional ETF listings.
Market participants await the SEC’s response to determine whether streamlined crypto ETF approvals will become a reality. The decision could accelerate product launches and expand cryptocurrency investment options for retail and institutional investors.
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