Analysts believe approvals could start a new altcoin rally by giving investors regulated exposure, though the absence of heavyweights like Fidelity and BlackRock suggests this wave may be important but not conclusive. At the same time, the SEC introduced new listing standards for commodity-based trust shares, which could shorten approval times for spot ETFs tied to assets with existing futures markets. While Bloomberg analysts call this a catalyst for a “wave” of launches, critics like SEC Commissioner Caroline Crenshaw warn that the shift may bypass certain key investor protections. Market Braces for Wave of ETF Decisions The crypto industry is preparing for what could be one of its most pivotal months in the ETF space, with the US Securities and Exchange Commission (SEC) facing final deadlines on 16 crypto exchange-traded fund (ETF) applications throughout October. The products span a wide variety of digital assets, including Solana, XRP, Litecoin, and even Dogecoin. The decisions are scattered across the month, and could set the tone for a potential altcoin rally. First in line is decentralized exchange Canary’s proposed Litecoin ETF, which has a final decision deadline of Oct. 2. This will be followed by Grayscale’s bid to convert its Solana and Litecoin trusts into ETFs on Oct.10, and capped off later in the month by WisdomTree’s XRP ETF, which faces its final deadline on Oct. 24. Bloomberg ETF analyst James Seyffart has been tracking the approvals, and explained that the SEC could issue decisions before the actual deadlines. This adds an element of unpredictability to the timeline. Market analysts already started speculating about the potential impact of approvals. In August, Bitfinex predicted that an approval wave could kickstart a new altcoin season by giving investors safer, regulated exposure to popular tokens. ETF specialist Nate Geraci said on X that the coming weeks are “enormous” for the crypto ETF market, as filings tied to Solana, Dogecoin, XRP, Cardano, and Hedera Hashgraph near their final deadlines. However, Geraci and others also pointed out that the list does not include filings from heavyweights Fidelity and BlackRock, which are two of the biggest names in the ETF space. This suggests that the October deadlines might be an important but not definitive chapter in the market’s development. Despite its history of delays, the SEC has shown some signs of softening its stance toward crypto ETFs. On Sept. 17, the regulator approved a new listing standard for commodity-based trust shares, effectively shortening the timeline for future spot crypto ETFs. Seyffart described this as a precursor to a “wave” of launches, while fellow ETF analyst Eric Balchunas pointed out that as many as 22 cryptocurrencies with active futures markets on Coinbase could be next in line for “spot ETF-ization.” Already, asset manager Hashdex expanded its own ETF offerings to include XRP, Solana, and Stellar. With optimism running high and October now being dubbed “ETF month” by traders, the stage is set for a series of decisions that could reshape investor access to altcoins. Faster Crypto ETFs After SEC Shift The SEC’s approval of new listing standards for commodity-based trust shares sparked optimism that spot crypto ETFs could reach the market more quickly, but there are still questions over investor protection. The policy change was announced on Sept. 17, and is seen by analysts as a potential turning point that could reduce approval times for certain digital asset ETFs from years to just months. Bloomberg ETF analyst James Seyffart described the move as a positive step toward a “wave of spot crypto ETP launches,” while his colleague Eric Balchunas suggested the SEC effectively lowered the regulatory hurdles for crypto ETFs tied to assets that already have futures trading on Coinbase. The changes mean ETFs for established assets like Bitcoin and Ethereum may not be affected much, but for digital assets not previously vetted by the SEC, the approval process could be much shorter. Seoyoung Kim , a finance professor at Santa Clara University, explained that existing diligence requirements are still intact under the ’33 and ’40 acts, and called the new standards more of a clarification than a relaxation of oversight. Similarly, Federico Brokate of 21Shares said that the shift will bring more predictability for issuers and investors, as products meeting the new generic standards could be listed more directly without requiring both S-1 and 19b-4 applications. Statement from Caroline Crenshaw Still, there are still concerns over investor protections. SEC Commissioner Caroline Crenshaw criticized the changes by arguing that the policy effectively bypassed safeguards meant to protect retail investors. She warned that the crypto ETFs likely to follow could be “new and arguably unproven products,” which raises doubts about whether the push for faster approvals aligns with the regulator’s mission. Others see potential benefits for retail investors despite the risks. Greg Benhaim of digital asset manager 3iQ said the standards could help investors better distinguish between ETFs tied to different coins, like Avalanche and Cardano, while also making it easier for the market to identify which assets resonate with retail demand.
