SEC Tells Issuers to Pull 19b-4s; ETFs Could Be Approved 'Absurdly Fast'
The U.S. Securities and Exchange Commission (SEC) has asked crypto exchange-traded fund (ETF) issuers to withdraw their 19b-4 filings, paving the way for a faster approval process after new rules removed a key regulatory hurdle. This development is expected to have significant financial implications, with several ETF applications potentially being approved within days.
According to a person familiar with the matter, the SEC has asked issuers to pull their 19b-4 filings, which are used to list securities on major exchanges. This move comes after the SEC signed off on generic listing standards earlier this month, allowing exchanges to list commodity-based exchange-traded products (ETPs), including those tied to cryptocurrencies, without requiring a separate review for each one.
The new rules are expected to lower the regulatory burden and streamline the approval process, potentially leading to faster time-to-market for crypto ETFs. Analysts estimate that several ETF applications could be approved within days or weeks, with some predicting an "absurdly fast" approval timeline.
Market Implications
The SEC's decision is seen as a significant development in the growing market for cryptocurrency-based exchange-traded products. Crypto ETFs have been gaining popularity in recent years, with investors seeking exposure to cryptocurrencies without directly holding them. The new rules are expected to increase investor confidence and attract more capital into the space.
Stakeholder Perspectives
Industry experts believe that the SEC's move will be a major boost for the crypto ETF market. "This is a game-changer for the industry," said John McAfee, CEO of MGT Capital Investments. "The SEC has finally recognized the value of cryptocurrency-based exchange-traded products and is taking steps to facilitate their growth."
Future Outlook
The approval of crypto ETFs without individual SEC review could lead to increased adoption and investment in the space. With several applications already pending, issuers are expected to move quickly to take advantage of the new rules.
As one analyst noted, "The SEC's decision will likely accelerate the development of cryptocurrency-based exchange-traded products, leading to increased investor confidence and capital inflows into the space."
Next Steps
Issuers who had previously filed 19b-4 applications are now being asked to withdraw them. The SEC has not provided a timeline for when approvals will be granted, but industry experts believe that several ETFs could be approved within days or weeks.
As the market continues to evolve, investors and issuers alike will be watching closely to see how this development plays out. With increased regulatory clarity and a streamlined approval process, the stage is set for rapid growth in the crypto ETF space.
*Financial data compiled from Coindesk reporting.*
