Crypto ETF Update: SEC Request 19b-4 Filing Withdrawal- What It Means?
The Securities and Exchange Commission’s (SEC) latest move on crypto exchange-traded funds (ETFs) has sent ripples through the crypto community, with many wondering what’s next. By mandating multiple ETF issuers to withdraw their 19b-4 filings, the SEC is signaling a shift toward a more streamlined and efficient approval process.
Notably, the SEC’s decision is part of a larger effort to establish generic listing standards for crypto ETFs, which would simplify the approval process and bring these financial products in line with more traditional offerings. As the industry adjusts to this new framework, we can expect to see a surge in institutional interest, increased liquidity in altcoin spot markets, and a more streamlined path to approval for crypto ETFs. With withdrawals potentially starting as early as this week, the community wonders what this means for the future of these crypto funds.
SEC Asks to Withdraw 19b-4 Filings
In her latest X post, Fox Business journalist Eleanor Terrett revealed that the US SEC has asked issuers of several major crypto ETFs to withdraw their 19b-4 filings. Reportedly, issuers of LTC, XRP, SOL, ADA, and DOGE funds will start withdrawing their filings this week. This development comes on the heels of the successful launch of the REX-Osprey Dogecoin and XRP ETFs.
While this move apparently seems like a step backward, it is actually a sign of progress. A deeper dive reveals that this move is part of a broader shift towards generic listing standards, which are poised to revolutionize the way crypto ETFs are approved and listed. By streamlining the process and eliminating the need for individual filings, the SEC is paving the way for faster and more uniform approvals, potentially opening the floodgates for increased adoption and broader retail access.
Is This a Rejection or a Delay?
While many remain ambiguous about the SEC’s move and its potential implications on the crypto ETF approvals, it has opened an open discussion on the X platform. Community members argue that the development indicates progress rather than a rejection or a delay.
It signals a reset rather than a denial of the ETF approval, as generic standards would allow issuers to skip bespoke filings and pave the way for faster approval. It was expected that there would be a brief pause as applications are refiled, followed by an acceleration in approvals as the SEC streamlines its review process.
Furthermore, it was anticipated that institutional interest could increase with improved predictability and batch approvals, potentially leading to broader retail access and liquidity in altcoin markets. A community member noted, “The ETFs don’t need to wait for individual approvals anymore because the SEC’s new framework already allows them to be listed, as long as issuers meet the generic standards.”
Altcoin ETF Approvals in October
Another community member wrote, “The SEC shifting crypto ETFs to generic listing standards is positive. It eliminates the need for individual 19b-4 filings, streamlines approvals, and signals that crypto ETFs are being treated as mainstream financial products.”
Recently, Vanguard announced its decision to allow cryptocurrency ETFs on its brokerage platform. With around 16 ETF applications pending approval in October, the latest development asking the issuers to withdraw their 19b-4 filings has sparked concerns within the community about potential delays.
Many are worried about the impact on the approval process, fearing that it might lead to further setbacks. However, some community members have come forward to reassure others, arguing that the move will not delay approval but rather expedite the process. They believe that the shift towards generic listing standards will smooth the review process, ultimately benefiting the ETF applications and issuers. Thus, it indicates that the altcoin ETFs are likely to be approved in October as expected. As per expert insights, the SEC’s latest move is less likely to hinder the imminent approval and launch of these crypto products.
