On a recent Tuesday, Polymarket announced that the CFTC had issued an Amended Order of Designation, empowering the company to facilitate trading activities on US venues. This approval enables Polymarket to onboard brokerages and customers directly, enhancing its operational capabilities.

Impact of Polymarket Regulatory Approval

The Polymarket regulatory approval is a testament to the platform’s compliance with federal standards. “This approval allows us to operate in a way that reflects the maturity and transparency that the US regulatory framework demands,” stated Shayne Coplan, Polymarket’s founder and CEO.

This approval follows a comprehensive investigation by the CFTC and the US Department of Justice, which concluded about five months ago. The probe questioned whether Polymarket was accepting trades from US-based users. During this investigation, authorities reportedly conducted a raid on Coplan’s home and seized electronic devices.

Future Prospects for Polymarket

Operating under the oversight of the CFTC, Polymarket’s regulatory approval could pave the way for broader acceptance and integration of digital asset platforms in the US market. Furthermore, a pending market structure bill in Congress could potentially expand the CFTC’s authority over digital assets, impacting platforms like Polymarket.

CFTC Leadership and Its Implications

This development coincides with changes within the CFTC’s leadership. Acting chair Caroline Pham announced the notice just as the US Senate is poised to vote on the nomination of SEC official Michael Selig as the new chair of the commodities regulator. The Senate Agriculture Committee has already advanced Selig’s nomination along party lines.

Despite the potential confirmation of Selig, the CFTC currently has four commissioner seats vacant. As of the latest updates, no announcements have been made regarding potential replacements for these positions.

The Polymarket regulatory approval is not just a step forward for the platform itself but also a reflection of the evolving regulatory landscape surrounding digital assets in the United States. This approval showcases the increasing recognition and importance of ensuring compliance within this burgeoning market.

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What are Litecoin ETFs and HBAR ETFs?

Asset manager Canary Capital has been making strides towards launching its Litecoin ETFs and HBAR exchange-traded funds. Recent filings, which include key final details, suggest that these financial products are near approval. However, the shutdown of the U.S. government has put a temporary halt on the process.

The recent amendments to the Litecoin (LTC) and Hedera (HBAR) spot ETFs introduced a fee of 0.95% and new tickers, LTCC and HBR. According to Bloomberg ETF analyst Eric Balchunas, these additions typically indicate that the funds are ready for launch.

Approval Delays Due to Government Shutdown

With the U.S. Securities and Exchange Commission (SEC) operating with limited personnel, the exact timeline for the approval of Litecoin ETFs remains uncertain. James Seyffart, another Bloomberg analyst, believes that these updates are positive signs, hinting that the ETFs are close to the “goal line.”

Crypto exchange Bitfinex had predicted in August that the authorization of altcoin-linked ETFs might ignite a new rally in altcoins, as such products would provide investors with increased access to these tokens.

Comparing Fees: A Closer Look

The fees for these ETFs are notably higher than those for spot Bitcoin ETFs, which average between 0.15% and 0.25%, according to Ledger. However, Balchunas mentioned that higher fees are typical for new and niche ETF sectors.

If the Litecoin ETFs and HBAR ETFs generate significant interest, it could lead to competition among issuers, with attempts to offer more cost-effective alternatives.

High-Leverage ETFs: The “Spaghetti Cannon” Approach

Despite the government shutdown, companies continue to file for new ETFs, with a particular focus on funds featuring 3x leverage. A 3x ETF tracks a range of assets and uses leverage to triple the daily or monthly returns.

Previous attempts to approve high-leverage crypto ETFs have been met with resistance from the SEC due to concerns over investor protection and market volatility. Tuttle Capital and other issuers have continued to file for these products, aiming to meet the demand of investors seeking high returns.

Future Prospects Amidst Uncertainty

The crypto industry had anticipated a significant influx of new crypto ETFs this October, with the SEC scheduled to make final decisions on numerous applications. Unfortunately, the government shutdown, which began on October 1, has left these plans in limbo.

While the SEC has announced that it will maintain limited operations, the approval process for Litecoin ETFs and other crypto products remains uncertain. Despite these challenges, the potential of these ETFs continues to generate significant interest in the crypto community.

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What the New SEC Approval Means for Crypto ETFs

According to James Seyffart, a Bloomberg ETF analyst, this policy shift may lead to a significant increase in spot crypto ETP launches. Eric Balchunas, another senior ETF analyst at Bloomberg, mentioned that the SEC has effectively cleared the regulatory path for crypto ETFs, provided they align with futures on Coinbase. This implies different regulatory requirements depending on the investible vehicle offered.

Seoyoung Kim, an associate professor of finance at Santa Clara University, explained that while these rule changes have minimal impact on already established categories like BTC and ETH, they could significantly reduce the approval time for new digital asset ETFs that haven’t been individually vetted. The new process might cut down approval times from years to mere months, as long as the ETFs comply with existing formation, listing, and trading standards.

Predictability and Efficiency in ETF Approvals

Federico Brokate, head of US Business at ETF issuer 21Shares, emphasized that the new listing standards provide enhanced predictability for issuers and investors. This change eliminates the need for both S-1 and 19b-4 applications for eligible assets, allowing products that meet generic standards to be listed directly if they qualify through existing futures or comparable structures.

Potential Risks and Considerations

Despite these advancements, concerns remain. The SEC has been reducing enforcement actions against cryptocurrency companies, adopting more industry-friendly policies. Caroline Crenshaw, the sole Democratic commissioner at the SEC, criticized the policy change for bypassing critical investor protection reviews. She warned that the emerging crypto ETFs might represent new and unproven products.

Kim reassured that all previous diligence requirements remain intact, viewing the rule changes as clarifications rather than relaxations of existing standards. Greg Benhaim of digital asset manager 3iQ suggested that the generic listing standards could guide average investors in understanding the differences between various ETFs, such as AVAX and ADA.

Since the SEC’s announcement, asset manager Hashdex has expanded its crypto ETF to include XRP, Solana, and Stellar. Analysts like Balchunas anticipate more developments, pointing to 22 coins with futures on Coinbase eligible for spot ETF consideration.

In conclusion, the SEC’s new policies could significantly enhance the crypto ETF landscape, offering a streamlined path to market entry while maintaining investor protection standards.

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However, the Assistant Secretary of SEC, Sherry R. Haywood, soon intervened and decided that the commission would review the approval. “The Commission will review the delegated action,” Haywood stated on Tuesday. She also clarified that “the July 22, 2025 order is stayed until the Commission orders otherwise.”

There was no immediate response from Bitwise regarding this decision. An SEC representative declined to comment on any specific company or filing.

The Bitwise 10 Crypto Index Fund, trading under the ticker “BITW,” currently includes BTC, ETH, XRP, SOL, Polkadot, and others, based on a market cap-weighted methodology, as mentioned on their website.

This move by the SEC mirrors a similar decision made for the Grayscale Digital Large Cap Fund LLC earlier this month. Grayscale’s proposal to convert another one of its closed-end funds into an ETF was approved on an “accelerated basis,” but was later put on hold.

Despite these setbacks, Grayscale has stated that it “remains committed” to continue its efforts to list. This comes as the SEC is also evaluating a wide range of crypto ETFs, tracking everything from SOL to DOGE, amidst an increasingly accommodating regulatory environment for crypto since President Donald Trump’s inauguration in January.

Disclaimer: The Block is an independent media outlet that provides news, research, and data. Foresight Ventures, a majority investor of The Block since November 2023, also invests in other crypto companies. Crypto exchange Bitget is a key LP for Foresight Ventures. Regardless, The Block continues to operate independently to provide objective, impactful, and timely information about the crypto industry.

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The SEC responded without any additional comments, sparking hope for a potential launch soon. Industry experts posit this could pave the way for REX Shares to introduce the nation’s first cryptocurrency ETF tracking staking rewards on the Solana blockchain.

Bloomberg’s Eric Balchunas, a leading ETF analyst, suggested that the SEC’s absence of objections is a significant indicator. He believes that this implies the proposal is likely on the brink of approval. “Rex also submitted a revised prospectus, which is entirely filled in. All things considered, it seems all systems are go for an impending launch. $SSK is the ticker,” Balchunas added.

Interestingly, REX Shares has initiated marketing its product as the inaugural staked crypto ETF in the US. The firm states that the product will trail Solana’s performance while generating returns through on-chain staking. However, it’s important to note that the SEC has not yet officially approved the product.

If given the green light, this would position REX Shares as the pioneer in offering a staking-based crypto ETF, outpacing competitors still chasing spot Solana products.

Nate Geraci, the president of ETF Store, highlighted that such a move could act as a stimulus for the industry. He suggested that this might inspire other applicants to investigate staked crypto offerings. “Seems like they believe comments have been addressed…Crypto ETF summer kicks off,” he noted.

Last month, the SEC achieved significant regulatory progress. The agency clarified that staking models alone do not inherently fall under securities laws. It also stated that additional features, such as bundled services or early redemption options, do not necessarily change that status. This guidance has motivated numerous asset managers to reconsider their ETF strategies. Many have submitted new proposals focusing on income-generating digital assets.

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The proposed Truth Social Bitcoin ETF aims to mirror the spot price of Bitcoin, offering a regulated route for investors to gain exposure to the world’s leading cryptocurrency. According to the 19b-4 submission, “The Shares aim to offer a simpler alternative to investing in Bitcoin directly, whether via peer-to-peer transactions, other bases, or digital asset trading platforms.” The ETF will run under NYSE Arca Rule 8.201-E and will permit the creation and redemption of shares in blocks of 10,000 or more. The proposed fund’s net asset value (NAV) will be calculated daily using the CF Benchmarks Index.

The custodian for the proposed ETF is Foris DAX Trust Company. The filing, however, did not disclose the fees or the ticker symbol for the Truth Social Bitcoin ETF. Yorkville will also need to file an S-1 registration that will likely elucidate all the specifics. According to Bloomberg’s senior ETF analyst Eric Balchunas, the “Trump” name is not visible on the ETF or anywhere in the documents, though it is widely known that Truth Social is owned by Trump.

The SEC has 45 days from the posting of the 19b-4 filing on the Federal Register to accept, reject, or delay the application. This period can be extended to 90 days or a maximum of 240 days if required, setting the final decision deadline as January 29, 2026. If approved, Truth Social would be the first social media platform to sponsor a Bitcoin ETF.

The chances of the Truth Social Bitcoin ETF gaining approval seem promising, since the SEC has already granted permission to 11 spot Bitcoin ETFs. This move comes after Trump Media and Technology Group’s February application for trademarks for various tailored ETFs and separately managed accounts (SMAs). The company has also entered into service and licensing agreements with Yorkville Advisors.

In addition, it was reported that Crypto.com and Trump Media joined forces to launch new altcoin ETFs in March. Trump Media also disclosed its plans to establish a Bitcoin treasury by buying $2.32 billion in BTC.

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This move by Bitwise exhibits the increasing acceptance and recognition of Dogecoin in the crypto market. Once mocked as a meme cryptocurrency, Dogecoin has now paved its way to the mainstream, with a market capitalization that is impossible to ignore.

The filing with the SEC is a significant step forward for Dogecoin, as it could potentially lead to the creation of a Dogecoin ETF. However, the SEC’s approval is not guaranteed, and the process could be lengthy and fraught with challenges.

Despite the hurdles, Bitwise is confident about this move. If the SEC gives its nod of approval, this could potentially revolutionize the scope of Dogecoin and lead to increased investment in this meme-turned-major cryptocurrency.

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