The U.S. Securities and Exchange Commission (SEC) has recently taken a significant step toward approving a series of crypto exchange-traded funds (ETFs), including those tied to major altcoins such as Solana and XRP, as well as a meme coin associated with former President Donald Trump. Industry insiders are calling the SEC’s latest guidance on crypto exchange-traded products (ETPs) a key milestone in the ongoing evolution of crypto investments.
From Roadblock to Roadmap: SEC’s Evolving Stance on Crypto
Under the leadership of the Republican administration, the SEC has shown a newfound willingness to engage with the crypto sector more constructively. This shift is evident in the agency’s recent decision to drop several aggressive enforcement actions that had previously targeted crypto companies. Additionally, the SEC has launched a task force aimed at developing a regulatory framework for crypto funds.
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, views the new SEC guidance as a crucial turning point for the industry. “The most fascinating thing about this guidance is that it exists,” he remarked. Hougan’s firm currently has six crypto ETF applications awaiting approval, and he believes the guidance demonstrates the SEC’s recognition that crypto ETPs are becoming part of mainstream finance.
Importantly, the SEC has instructed issuers to present disclosures in plain English, addressing key risks such as volatility, custody concerns, and the competitive nature of the crypto market. This move signals a more streamlined approach to approving crypto ETFs, marking the agency’s willingness to incorporate these products into the broader financial ecosystem.
The SEC’s Universal ETF Listing Rule
One of the most significant developments on the horizon is the SEC’s work on creating a universal listing rule for crypto ETFs. Currently, exchanges must file a Form 19b-4 for each crypto ETF, a process that can delay approvals for up to 240 days. The new universal rule, being refined in collaboration with major exchanges such as Nasdaq and Cboe, aims to simplify this process, reducing approval delays to just 75 days.
A top executive from a major ETF issuer confirmed, “The SEC is seeking a general rule that can apply to all listings.” This move could significantly accelerate the approval timeline for new crypto ETFs. According to sources, exchanges may begin filing under this new rule within weeks.
Related article: Could an XRP Spot ETF Approval Send Ripple to New Highs? What Investors Should Know
What’s Next for Crypto ETFs?
While the SEC’s guidance is an important step, final approval for spot ETFs tied to major altcoins, such as Solana, XRP, Polkadot, and even Dogecoin and Trump’s meme coin, is still pending. Industry insiders expect that decisions on these ETFs will not be made until the SEC releases its second major guidance document, which is anticipated in the last quarter of 2025.
REX-Osprey Launches Solana ETF Amid Regulatory Uncertainty
As the SEC works to finalise its guidelines for crypto ETFs, some asset managers are moving forward with creative workarounds. On July 1, REX Financial and Osprey Funds launched the REX-Osprey Sol + Staking ETF, the first U.S.-listed ETF offering indirect exposure to Solana.
This ETF utilises an offshore investment structure that holds both Solana and a non-U.S. Solana fund, incorporating staking mechanisms to enable investors to earn a yield by participating in Solana’s blockchain validation process. The launch has been met with strong investor interest, attracting $12 million in assets on its first day. REX CEO Greg King confirmed that the firm is preparing to launch a direct Solana spot ETP as soon as the SEC finalises the rules.
Conclusion: The Future of Crypto ETFs
The SEC’s recent guidance represents a turning point in the regulatory landscape for crypto ETFs. As the agency moves closer to approving a series of crypto-based ETFs, including those tied to Solana, XRP, and meme coins, the future of crypto investments is becoming clearer. With a universal listing rule in the works and more regulatory clarity on the horizon, investors are eagerly awaiting the final decisions. As the industry prepares for these changes, the market’s appetite for crypto ETFs continues to grow, with Solana-related products already drawing significant interest.
