SEC Reduces Review Time for Crypto ETFs

Key Points: SEC reduces review time for crypto ETFs to 75 days. Benefits include faster entry to market for XRP and SHIB. Expected inflows of $5–8 billion by year-end. The U.S. Securities and Exchange Commission’s rule change rapidly speeds up approval for crypto ETFs, such as XRP and SHIB, allowing quicker market entry by October 2025. Accelerating ETF approvals may attract significant institutional investments, broadening accessibility to altcoins and potentially influencing overall market dynamics and investor strategies. SEC’s New Rule for Crypto ETF Approval The U.S. Securities and Exchange Commission (SEC) has enacted a rule change, reducing the review period for crypto ETFs to 75 days. This acceleration facilitates faster market entry for digital assets like XRP, SHIB, and HBAR under the new provisions. Commissioner Caroline A. Crenshaw confirmed the SEC’s decision, highlighting the approval of proposed rules for digital asset commodity-based ETPs. This strategic alteration impacts many participants, including ETF providers like Grayscale and VanEck, promoting regulated crypto access. “Today the Securities and Exchange Commission approved proposed rule changes that will allow Exchanges…to list and trade certain digital asset commodity-based ETPs.” – Caroline A. Crenshaw, Commissioner, U.S. SEC, SEC Statement Market Impact of Expedited Approval The expedited approval is anticipated to impact markets significantly by drawing more institutional capital. Projections suggest new XRP and Solana ETFs could contribute $5–8 billion in inflows by late 2025, intensifying investment enthusiasm surrounding altcoins. Institutional reactions indicate heightened interest in diversifying portfolios through these ETFs. Assets like BTC and ETH remain benchmark portfolios, with firms focusing on opportunities presented by fast-tracked approvals, signaling a robust institutional uptake. Ripple Effects and Broader Trends Ripple effects are expected as institutional interest escalates. Investors are looking forward to further detail from ETF sponsors regarding specific approvals and inflow impacts. Key players are poised to capitalize on these market shifts. Historical trend analysis shows significant financial inflows when ETFs were introduced for Bitcoin and Ethereum. As regulated frameworks ease entry, on-chain participation through ETFs increases. The expected result is a wider acceptance and adoption of crypto financial products.