Following a 2023 court ruling that classified most cryptocurrencies as commodities rather than securities, the SEC has approved Ethereum and Bitcoin spot ETFs, marking a shift in regulatory approach.

Industry analysts expect the first ETFs under these new rules to be approved in early October, with a wave of launches anticipated in the fourth quarter of 2025, which could reshape investment strategies.

Several firms have already filed ETF applications under the revised standards, with about a dozen currently under review, signaling a swift industry response and diversification beyond traditional holdings.

The potential rise in ETF approvals in the U.S. could positively influence global markets like the Philippines by enhancing investor confidence, market stability, and liquidity, despite limited direct access for local investors.

While regulatory progress is promising, concerns remain about investor demand for lesser-known cryptocurrencies, along with issues like liquidity, volatility, custody, and the need for investor education.

Despite the streamlined process, challenges such as market volatility, technological vulnerabilities, AML/KYC compliance, and custody complexities could impact ETF performance and operational risks.

Experts predict that over 100 new crypto ETFs could launch on U.S. exchanges within the next year, mirroring previous surges following regulatory changes.

The U.S. SEC has significantly streamlined its ETF approval process, reducing approval times from up to 270 days to approximately 75 days for ETFs that meet specific criteria, including those related to cryptocurrencies.

Recent updates to the SEC's standards for ETF listings now enable potentially hundreds of new crypto ETFs to list and trade more easily, fostering rapid growth in this sector.

Market participants foresee increased competition among fund managers to develop innovative, sector-specific, infrastructure, and yield-generating crypto ETFs, expanding investor options.

These regulatory changes are expected to boost cryptocurrency visibility as an asset class, attract both retail and institutional investors, and foster rapid sector growth.

The new standards permit ETFs tied to a broader range of cryptocurrencies, including Solana, XRP, and Cardano, to bypass individual reviews if they meet predefined conditions, reflecting market maturity.

The main regulatory change introduces common quotation standards for commodity-based funds, simplifying the listing and trading process for ETFs, including those related to cryptocurrencies.