The U.S. encryption investment market welcomes new opportunities: Regulatory relaxation promotes ETF development

Recently, the U.S. encryption asset investment sector has welcomed a series of significant positive news. Regulatory agencies have shown a clear shift in their attitude towards crypto ETFs, bringing new development opportunities to the market.

First, the U.S. Securities and Exchange Commission (SEC) officially approved the physical subscription and redemption mechanism for encryption ETFs. This decision significantly enhances trading efficiency and market liquidity. Physical subscription and redemption allows authorized participants to directly create or redeem ETF shares using encryption assets, avoiding the high costs and slippage risks associated with cash subscription and redemption models. This not only optimizes the ETF operation process but also builds a more direct bridge between encryption assets and traditional financial products.

The SEC chairman stated that this approval marks the beginning of a new chapter in regulation, aimed at establishing a more practical regulatory framework for the encryption market. It will reduce product costs, enhance operational efficiency, and ultimately benefit investors. In addition, the SEC has also approved a series of proposals to promote the development of the encryption asset market, including the listing and trading of hybrid spot Bitcoin and Ethereum ETPs, as well as specific Bitcoin ETP options trading, further enriching the market tools.

Secondly, the listing channel for encryption ETPs has also welcomed important optimizations. A certain exchange submitted a groundbreaking rule amendment proposal to the SEC, aiming to establish universal listing standards for Commodity-Based Trust Shares (CBTS). The new proposal breaks through the original rules' restrictions on single commodities, allowing trust shares to hold multiple assets, including encryption, commodity derivatives, securities, and more.

The proposal also clarifies three types of underlying asset paths that can be directly listed, including trading on specific markets, trading on designated contract markets for more than 6 months, or holding over 40% in already listed ETFs. These paths effectively anchor the liquidity, compliance, and regulatory visibility of the assets, forming a unified and transparent "listing is admission" mechanism.

The new regulations also strengthen requirements for market transparency and investor protection, mandating that CBTS issuers publicly disclose core information on a daily basis. It is worth mentioning that the proposal also supports an encryption staking mechanism, providing more possibilities for product design and revenue models.

These regulatory changes will open efficient and transparent listing channels for commodity ETPs, including encryption assets. It is expected that this rule is likely to be finalized within 60 days. Once approved, a certain trading platform, the Commodity Futures Trading Commission (CFTC), and altcoin ETFs may become the biggest beneficiaries.

Under the new regulatory framework, as long as a certain asset's futures have more than six months of compliant trading records on a specific platform, it qualifies for general listing. This means that the platform may become the "certification center" for altcoins to reach ETF. At the same time, due to the new proposal supporting a staking mechanism, related custody and staking service providers will also benefit.

Regulatory trends are becoming clearer, and the product path for encryption ETFs is determined by the SEC, while the asset qualifications are pre-reviewed by the CFTC. Currently, there are about a dozen types of encryption assets that meet the criteria, which aligns with market expectations. Industry analysts expect that these altcoin ETFs may be approved in September or October of this year.

Overall, the U.S. encryption investment market is welcoming new development opportunities. The optimization of the regulatory environment not only provides investors with more choices but also lays the foundation for the compliance and scaling development of the entire industry. With the implementation of these new policies, we have reason to expect that the investment ecosystem of encryption assets will usher in a new round of prosperity.