<\/p>\n
The race to bring more crypto assets to the stock market as ETFs may leave most stuck on the sidelines, Galaxy Digital found.<\/p>\n
Efforts to speed up crypto exchange-traded fund (ETF)<\/a> approvals in the United States may actually sideline most tokens in the foreseeable future, Galaxy Digital’s<\/a> research associate Lucas Tcheyan revealed in a recent report<\/a>. The new research estimates that only 12 of the top 100 assets by market capitalization beyond BTC and ETH would make the cut.<\/p>\n In late July, Cboe\u2019s BZX Exchange, Nasdaq, and NYSE Arca all filed<\/a> 19b-4 forms with the U.S. Securities and Exchange Commission (SEC) to propose listing standards for crypto ETFs that would replace today\u2019s case-by-case system.<\/p>\n The applications come as the SEC faces a pileup of 91 pending crypto ETF requests covering 24 tokens and several index products, per Galaxy\u2019s report. And while the agency\u2019s final possible deadline for a verdict is March 27, 2026, Tcheyan thinks the call will likely come earlier, due to a \u201cfriendlier SEC attitude toward crypto.\u201d<\/p>\n For now, only 10 tokens qualify under the fast-track criteria: Dogecoin (DOGE<\/a>), Bitcoin Cash (BCH<\/a>), Litecoin (LTC<\/a>), Chainlink (LINK<\/a>), Stellar (XLM<\/a>), Avalanche (AVAX<\/a>), Shiba Inu (SHIB<\/a>), Polkadot (DOT<\/a>), Solana (SOL<\/a>), and Hedera (HBAR<\/a>), according to the Galaxy Digital report.<\/p>\n Cardano (ADA<\/a>) and XRP<\/a> are also expected to join them in September and October respectively, once the two assets pass the required six months of regulated futures trading, Tcheyan writes.<\/p>\n \u201cWe view these as more likely to see ETF launches given their qualification under the proposed fast-track rule, and very likely if the rule is accepted,\u201d Tcheyan wrote, referring to the above assets.<\/p>\n Of those, nine tokens already have ETF applications on file, making them front-runners if the rule is adopted. Tcheyan says XRP and SOL could also squeak in through another path as each already has futures-based ETFs with \u201cno less than 40% of their NAV\u201d tied to the underlying token.<\/p>\n The fast-track process hinges on three conditions: tokens must trade on a monitored exchange through the Intermarket Surveillance Group (ISG), have a six-month history of regulated futures trading, or be backed by a futures ETF holding at least 40% of the asset.<\/p>\n As of press time, no crypto asset beyond BTC<\/a> and ETH<\/a> meets the first condition because no spot crypto markets are ISG members. While Coinbase<\/a>\u2019s derivatives exchange is part of the group, it only covers futures rather than spot trading, Tcheyan explains.<\/p>\n That could change if the CFTC\u2019s new \u201cCrypto Sprint\u201d<\/a> or the SEC\u2019s \u201cProject Crypto\u201d<\/a> open doors for regulated spot markets, though the timeframe remains unclear.<\/p>\n Tcheyan wrote in the report that the lack of regulated crypto ETFs \u201chas not dampened demand for exposure,\u201d but instead, has redirected capital \u201cinto alternatives such as digital asset treasury management firms, private trusts, and structured products.\u201d<\/p>\nShort List<\/h2>\n
Why Only 12 Tokens?<\/h2>\n