SEC Streamlines Crypto ETF Listings, New Funds Launch

The U.S. Securities and Exchange Commission’s new generic listing standards for commodity-based trust shares represent a significant shift in crypto ETF regulation. The change allows applicants meeting the listing standards of major exchanges like Nasdaq, Cboe BZX, and NYSE Arca to bypass individual rule change applications that previously slowed the approval process. This regulatory streamlining effectively fast-tracks new crypto products to market, though it didn’t receive unanimous support within the commission.

Commissioner Caroline Crenshaw voiced opposition, stating in a Wednesday statement that the new rule amounts to “passing the buck on reviewing these proposals and making the required investor protection findings, in favor of fast tracking these new and arguably unproven products to market.” Despite this internal dissent, the regulatory change has immediately triggered action from ETF providers eager to capitalize on the simplified process.

Rex-Osprey emerged as the first mover following the SEC’s announcement, filing for both a Rex-Osprey XRP ETF and Rex-Osprey DOGE ETF. The company is also developing a more sophisticated leveraged product—the Rex-Osprey DOJE Growth & Income ETF—targeting traders seeking amplified returns through higher risks. This innovative fund aims to pay weekly distributions by selling calls while targeting 1.05 to 1.5 times the daily movement of its underlying DOJE Dogecoin ETF, with daily exposure resets making it unsuitable for long-term investors.

The market reaction to these developments was immediate but mixed. Dogecoin initially jumped to $0.28 on the bullish ETF news, though the gains proved temporary. At time of writing, DOGE had retreated over 5% to $0.26, demonstrating the volatility that characterizes both the underlying assets and the market’s response to regulatory developments.

The Solana ecosystem witnessed remarkable corporate treasury activity, with Forward Industries achieving the milestone of becoming Solana’s first $1 billion treasury company. This achievement was quickly followed by Helius announcing plans to raise $500 million to build its own Solana treasury, signaling growing institutional confidence in SOL’s long-term value proposition.

Forward Industries further demonstrated its commitment by debuting an at-the-market offering to raise an additional $4 billion in cash specifically for purchasing more SOL tokens. If successful, this move could more than double the $3.1 billion worth of SOL currently held by publicly traded companies, significantly impacting the token’s circulating supply and market dynamics.

The Solana treasury trend gained additional momentum with Marco Santori, former chief legal officer at Kraken, being named CEO of newly renamed Solana treasury company Solmate. The company made its debut as a digital asset treasury by announcing a $300 million raise, resulting in its stock soaring an impressive 500%. Despite these bullish developments, Solana’s price failed to escape broader market pressures, trading down 4% at approximately $238 at time of writing.

Not all market movements were positive, as evidenced by KindlyMD’s dramatic 54% share price drop to $1.26 following its S-3 registration filing. The company, which trades on NasdaqGM under the NAKA ticker, became a Bitcoin treasury company after merging with Nakamoto Holdings earlier this year. The $200 million PIPE deal that jumpstarted its Bitcoin treasury vision included discounted shares that remained locked until the S-3 registration became effective.

CEO David Bailey acknowledged the sell pressure from $200 million worth of newly unlocked discounted shares but maintained optimism, noting on X that the lower stock price allowed new investors to “buy in relatively cheap and ride with us.” He expressed confidence that increased trading volume would soon “churn and reset the cap table” to create a “convicted and aligned shareholder base.” By Friday’s close, shares had recovered slightly to $1.40 but remained down 87% over the past month.

Meanwhile, Grayscale successfully listed its Digital Large Cap Fund (GDLC) after months of regulatory back-and-forth with the SEC. The fund tracks a basket of cryptocurrencies including XRP, Solana, Cardano, Bitcoin, and Ethereum, providing diversified exposure to major digital assets. In other regulatory developments, newly IPO’d Bullish saw its shares jump on news of receiving a BitLicense from the New York State Department of Financial Services, enabling expanded U.S. operations as a digital asset trading and custody business.