SEC's Simplified Approval Process May Lead to New Crypto ETPs

According to PANews, Bitwise Chief Investment Officer Matt Hougan has cautioned that while the U.S. Securities and Exchange Commission (SEC) may simplify the approval process for cryptocurrency exchange-traded products (ETPs), this does not guarantee their success. Hougan noted that general listing standards could be introduced as early as October, potentially leading to a surge in new cryptocurrency ETPs. He referenced the history of ETF development to support this prediction. However, Hougan warned against equating the launch of cryptocurrency ETFs with a resurgence in cryptocurrency popularity. He emphasized that the existence of cryptocurrency ETPs does not necessarily mean a significant influx of funds, as investors need a fundamental interest in the underlying assets. ETPs based on assets like Bitcoin Cash may struggle to attract investment. Nonetheless, Hougan highlighted that the introduction of ETFs could prepare products for growth, as they facilitate traditional investors' allocation into cryptocurrencies.