The SEC recently approved general listing standards for commodity-based trust shares, paving the way for crypto exchange-traded products (ETPs). Following this, Grayscale transformed its Digital Large Cap Fund into the Grayscale CoinDesk Crypto 5 ETF, which launched on the NYSE Arca. The ETF holds tokens deemed acceptable under the new guidelines. Krista Lynch from Grayscale emphasized the blending of traditional finance with digital assets. These new generic listing standards simplify the approval process for ETPs, potentially leading to a surge in product offerings. Notably, various tokens beyond Bitcoin and Ethereum are meeting the criteria. Input from industry experts suggests that the new regulations could foster greater diversification in investor products, with potential for staking to unlock new value. As seen with Bitcoin and Ethereum ETFs that launched earlier in 2024, demand surged significantly with high weekly flows, indicating strong market interest as more ETPs hit the market.

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