The Chicago Board Options Exchange (CBOE) filed a proposal with the SEC on July 31 that would establish standardized criteria for crypto ETF approvals, moving away from the current system of individual case reviews. The framework would allow automatic listings for crypto assets that have been traded in regulated futures markets for more than six months.
Under this proposed system, crypto ETFs could launch much faster by avoiding the typically extended SEC review process. The change would primarily benefit Bitcoin and Ethereum products while potentially creating broader effects across the digital asset ecosystem.
Streamlined Approval Process Takes Shape
The CBOE’s framework represents a significant shift from traditional regulatory approaches, where each crypto ETF required separate SEC evaluation. According to Nate Geraci, President of NovaDius Wealth, “Issuers wouldn’t have to request specific approval for each crypto ETF as long as it meets certain criteria.”
🚨JUST IN: The @SECGov has granted accelerated approval for proposed rule changes from @Nasdaq, @CBOE, and @NYSE to allow in-kind creations and redemptions for $BTC and $ETH ETFs.
That means market makers can deliver or receive actual crypto instead of cash — a big shift toward… pic.twitter.com/xdEsiaEqs5
— Eleanor Terrett (@EleanorTerrett) July 29, 2025
Market participants have responded positively to the proposal, viewing it as a pathway to greater innovation and product diversity in crypto-based financial instruments. The automatic approval system would mirror processes already established for traditional equity ETFs, which have operated under similar frameworks since the late 20th century.
Current Market Dynamics
Bitcoin currently trades at $118,505.67 with a total market capitalization of $2.36 trillion, maintaining its dominant position at 60.55% of the overall crypto market. Trading activity has increased notably, with volumes jumping 13.55% as investors respond to regulatory developments.
Industry experts suggest this rule change could significantly expand ETF market access while creating clearer regulatory pathways. The streamlined process may drive innovation in Bitcoin and Ethereum-based financial products, potentially establishing greater regulatory certainty across the crypto sector.
Broader Market Implications
The proposal maintains a steady course for crypto ETF development without introducing dramatic policy shifts. Market participants can expect continued institutional adoption patterns as regulatory frameworks become more predictable.
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