Crypto ETFs Could Unlock 12+ Altcoins Under New SEC Rule

Key Points

• Crypto ETFs Could Unlock 12+ Altcoins Under New SEC Rule
• Coinbase and CME are key platforms for approval
• Meme coins and low-liquidity tokens still face hurdles
• Full ETF approvals could begin by September 2025

The U.S. Securities and Exchange Commission (SEC) has taken another big step toward opening up crypto ETFs, but with a new rule that could leave some tokens behind.

Under its latest framework, the SEC now allows crypto exchange-traded funds (ETFs) for digital assets that have had listed futures contracts for at least six months on either Coinbase Derivatives or the Chicago Mercantile Exchange (CME).

First, here’s CBOE’s filing https://t.co/56sRNeaH2r

— Greg Xethalis (@xethalis) July 30, 2025

This futures-based approach shifts the approval process from market cap or liquidity standards to one centered on derivatives trading.

This is huge news for major altcoins already trading futures on Coinbase or CME. According to Bloomberg ETF expert Eric Balchunas, this could immediately unlock ETF pathways for roughly a dozen altcoins, including Solana, Avalanche, and Chainlink, assuming they meet the six-month rule.

“Any coin that has futures tracking it for over six months on Coinbase’s derivatives exchange would be approved,” Balchunas noted on X (formerly Twitter).

The SEC’s “Listing Standards” for crypto ETPs is out via new exchange filing. BOTTOM LINE: Any coin that has futures tracking it for >6mo on Coinbase’s derivatives exchange would be approved (below is list). It’s about a dozen of the usual suspects, the same ones we had at 85% or… https://t.co/QlzZnta7Yv pic.twitter.com/CmBr8XxAcM

— Eric Balchunas (@EricBalchunas) July 30, 2025

And Coinbase could have the edge here. While CME is well-known in traditional finance, Coinbase’s derivatives platform covers more crypto assets. Plus, it includes tokens that CME already lists, streamlining the process further.

This move follows another SEC development: the recent approval of in-kind ETF redemptions for Bitcoin and Ethereum ETFs. That change allowed token redemptions directly with issuers instead of cash settlements, making ETFs more efficient for institutional investors.

Now, with this new listing standard focused on futures, the SEC appears to be outsourcing decision-making to the Commodity Futures Trading Commission (CFTC), which governs futures markets.

If the rule is finalized as-is, the SEC pseudo outsourced the decision making for which digital assets will be allowed in an ETF wrapper. The CFTC is the primary decider of what asset can have futures contracts & having futures is the primary requirement of this rule proposal https://t.co/PVFfUKvuk5 pic.twitter.com/D8CEdwW5ir

— James Seyffart (@JSeyff) July 30, 2025

“The SEC pseudo-outsourced the decision-making… Having futures is the primary requirement,” said ETF analyst James Seyffart.

In terms of ETF-izing newer alt coins that don’t have futures or meme coins like Bonk and Trump coin etc, that would need to go through the 40 Act and so the $SSK Maneuver. So we could see that too but in a dif structure. History shows, 33 Act is preferred bc it is pure spot.

— Eric Balchunas (@EricBalchunas) July 30, 2025

Why Meme Coins Are Still in ETF Limbo

While the new rules open doors for many major altcoins, not everyone gets to join the party.

Tokens without an active futures market, like meme coins Bonk, Dogwifhat, or TrumpCoin, are unlikely to qualify under this rule. Instead, they would need to take a more complex route through the Investment Company Act of 1940, also known as the “40 Act.”

This alternative structure, also called the “$SSK Maneuver,” is more restrictive and generally not preferred by issuers. Most crypto ETFs so far have been filed under the 1933 Securities Act, which allows for spot-based exposure and fewer regulatory hoops.

“So, we could see that too, but in a different structure. History shows, the 33 Act is preferred because it is pure spot,” Balchunas added.

In terms of ETF-izing newer alt coins that don’t have futures or meme coins like Bonk and Trump coin etc, that would need to go through the 40 Act and so the $SSK Maneuver. So we could see that too but in a dif structure. History shows, 33 Act is preferred bc it is pure spot.

— Eric Balchunas (@EricBalchunas) July 30, 2025

For now, Coinbase Derivatives remains the only crypto-native exchange that is a member of the Intermarket Surveillance Group (ISG), a critical factor in the SEC’s comfort with ETF oversight and monitoring. That makes it a gatekeeper of sorts for the next wave of crypto ETFs.

Interestingly, the SEC’s framework doesn’t mention market cap, liquidity, or supply metric; it’s all about whether futures trading exists and how long it’s been active. This narrow focus reflects a trend toward using existing regulated infrastructures, like derivatives markets, to reduce perceived risks.

Even though there’s no official approval timeline, analysts believe we could see ETF green lights by September or October 2025, depending on how the proposal moves through the final review process.

This doesn’t mean an explosion of crypto ETFs overnight. But for the first time, there’s a clear path forward, especially for assets beyond Bitcoin and Ethereum.

And with growing investor interest in Ethereum’s $10B reserve surge and the ongoing rally in altcoin-ETH pairs, ETF approval could significantly accelerate capital inflows into these ecosystems.

Coinbase’s Growing Power in the ETF Pipeline

One of the clearest winners in this shift is Coinbase Derivatives. Its growing influence as a central hub for eligible futures contracts makes it a powerful gatekeeper for the next generation of crypto ETFs.

Unlike CME, which caters more to institutional investors and focuses on Bitcoin and Ethereum, Coinbase Derivatives lists a wider variety of altcoins, including newer or more experimental tokens.

This gives altcoins a fighting chance at ETF inclusion, as long as they maintain six months of futures trading history.

This positions Coinbase as a critical player not just in trading but in crypto regulation and product development. The SEC’s reliance on derivatives exchanges indirectly increases the influence of the platforms that list them.

Until a major spot crypto exchange joins the Intermarket Surveillance Group (ISG), a key requirement for ETF surveillance, Coinbase Derivatives will likely remain the most viable option for token listings.

ETF experts say this may lead to a rush among token projects to get listed on Coinbase Derivatives, especially if they want to be part of future ETF offerings. We may even see a “futures arms race” where tokens race to build enough demand and trading volume to qualify for listings.

With Bitcoin dominance easing and altseason picking up, the timing couldn’t be better for altcoins to gain institutional exposure.

Even major exchanges like Kraken, planning a $15B IPO, could benefit from broader ETF inclusion, as it increases investor demand and regulatory credibility across the industry.

So while the SEC isn’t explicitly naming winners or losers, its rule effectively elevates exchanges like Coinbase to a decision-making role. With ETFs seen as a gateway to institutional adoption, any platform that controls ETF eligibility controls serious market influence.