FX.co ★ US Securities and Exchange Commission approves listing standards for crypto exchange-traded funds

Bitcoin and other cryptocurrency assets surged following news that the US Securities and Exchange Commission (SEC) has fast-tracked approval of listing standards for cryptocurrency exchange-traded funds (ETFs), quickly laying the groundwork for these products to enter public markets.

This decision marks a turning point in the recognition of digital assets by the traditional financial system. Opening the market to crypto-based ETFs significantly expands access to this asset class for both institutional and retail investors, many of whom have previously avoided direct ownership of cryptocurrencies due to storage complexities and regulatory uncertainty.

The emergence of various types of ETFs beyond just Bitcoin and Ethereum will allow investment and pension funds, along with other institutional players, to gain exposure to crypto assets without having to purchase, store, or manage them directly. This, in turn, could result in a significant influx of capital into the cryptocurrency market, providing strong support for further price growth in Bitcoin and other digital assets.

In a statement filed on Wednesday, the SEC noted that it found sufficient grounds for preliminary approval of the listing standards.

"The Commission believes it is appropriate to approve the proposals within 30 days following the date of publication of the notice of the amended exchange filings in the Federal Register," the agency said. "The amended documents clarify the definitions outlined in the proposed general listing standards and the requirements for those standards."

Nasdaq, NYSE Arca, Inc., and Cboe BZX Exchange had previously requested the agency to amend its rules to allow for broad-based crypto ETF listings.

"This approval helps maximize investor choice and encourages innovation by streamlining the listing process and lowering barriers to access digital asset products on America's trusted capital markets," said SEC Chairman Paul Atkins.

As mentioned above, the SEC's approval is a major step forward for dozens of crypto ETFs awaiting regulatory green lights. Firms are eager to list funds tracking assets such as SOL, XRP, and DOGE, capitalizing on a more favorable regulatory environment at the SEC.

The SEC also announced on Wednesday its approval of the listing and trading of the Grayscale Digital Large Cap Fund. The agency had previously paused Grayscale's request to convert the fund. This ETF, which currently trades over-the-counter and is accessible only to accredited investors, consists predominantly of Bitcoin (nearly 80%) and Ethereum (around 11%). According to Grayscale's website, Solana, Cardano, and XRP are also represented in smaller, single-digit percentages.

Trading recommendations

Bitcoin

From a technical standpoint, buyers are now aiming to reclaim the $117,800 level, which would open a direct path to $119,300, and from there it's a short step to $120,900. The ultimate bullish target stands at around $121,300 — a breakout above this level would confirm further strengthening of the bull market.

If Bitcoin declines, buyers are expected to step in around $116,000. A drop below that zone could send BTC swiftly down to $114,400, with the furthest bearish target being around $113,200.

Ethereum

Ethereum's firm hold above the $4,619 level opens a clear path toward $4,697. The most distant bullish target is the $4,784 area — breaking through it would reinforce bullish momentum and growing investor interest.

In case of a pullback, buyers are likely to appear around $4,533. Falling below that level could quickly push ETH down to $4,441, with $4,347 being the lowest support target in this scenario.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.