With this new system, CBOE aims to eliminate the approximately 180-day evaluation burden for crypto ETF applications. Investors would gain quicker access to newly approved products. 

Meanwhile, the SEC is working on an alternative regulation that would reduce the crypto ETF approval period to 75 days. During this process, the SEC continues to develop simplified listing standards in collaboration with exchanges. 

CBOE Sets New Standards in the ETF Race 

By submitting the 19b-4 form, CBOE has proposed a standardized framework for commodity-based crypto ETF products. This would eliminate the need for companies to seek separate approvals for each product. Moreover, this approach would provide speed and transparency in the listing process. 

CBOE also aims to gain a competitive edge over rival exchanges like Nasdaq and NYSE with this proposal. ETF analyst Nate Geraci highlighted the importance of the initiative, noting that the simplified approval process would benefit issuers: “Issuers won’t have to request individual approval for each crypto ETF, as long as certain conditions are met.” 

The SEC’s recent stance also supports this transformation. The Commission has allowed a shift to the in-kind redemption model for Bitcoin and Ethereum ETFs. This enables companies to conduct share redemptions directly with crypto assets. Since the system supports crypto-based transactions over cash, it contributes to increased market liquidity. The new model holds the potential for significant structural change in the ETF ecosystem. 

Solana and XRP ETFs to Launch Under New Rules 

CBOE’s proposal introduces clear requirements for crypto assets to be included in ETFs. A crypto asset must be traded on a regulated derivatives market for at least six months before being listed. If less than 85% of a fund is redeemable, liquidity management and staking will apply. 

Attorney Bill Morgan expects XRP ETFs to begin operating under the in-kind model in Q4 of this year. Once SEC approval is granted, XRP ETFs are expected to enter the market swiftly.

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