The US Securities and Exchange Commission (SEC) has approved NYSE Arca’s request to move Grayscale’s Ethereum Trust ETFs under generic listing standards, a step that streamlines oversight and reflects the regulator’s growing openness toward crypto-linked financial products.

SEC Approval Marks Milestone for Grayscale Ethereum Trusts

NYSE Arca’s proposed rule change was approved on September 19, 2025, according to a filing from the SEC. The approval allows the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF to shift from non-generic to generic listing standards under Rule 8.201-E.

This decision means that the two Ethereum-based products can continue trading without the need for individual case-by-case reviews. Instead, they will be governed by the same generic standards that apply to similar exchange-traded products, which simplifies the process and provides greater market certainty.

This development follows the SEC’s landmark decision on September 17, 2025, when it voted to approve generic listing standards for commodity-based trust shares across national securities exchanges. That approval gave exchanges the ability to list and trade commodity-backed products, including digital asset ETFs, as long as they meet specific requirements under the Exchange Act.

Generic Standards Reshape ETF Listings and Spark New Filings

The SEC previously approved Grayscale’s Digital Large Cap Fund, the first multi-crypto asset exchange-traded product to reach the market. The fund provides exposure to bitcoin, ether, XRP, Solana, and Cardano, and its approval came alongside the Commission’s accelerated decision to establish generic listing standards for crypto ETFs.

‎Bloomberg’s James Seyffart earlier shared that Hashdex submitted a filing to the SEC to expand its Nasdaq Crypto Index US ETF beyond its current focus on Bitcoin and Ethereum. The proposal seeks to include Solana, Cardano, and XRP in line with the recently approved generic listing standards for commodity-based trust shares.

‎By aligning with these rules, Hashdex aims to allow its fund to track the full Nasdaq crypto index, which is weighted heavily toward Bitcoin and Ethereum but also includes allocations to Solana, Cardano, and XRP. This effort illustrates how the new framework is already shaping the structure of crypto ETFs, reinforcing the same regulatory pathway that enabled Grayscale’s Ethereum products to transition into generic listing status.

This sequence of filings and approvals shows how the SEC is streamlining oversight across digital asset products, which directly connects to its reasoning in the official order for the Grayscale Ethereum trusts.

Balancing Innovation, Oversight, and Investor Protection

In its official approval order, the SEC highlighted that the amendment will prevent duplication of effort, since every listing will no longer require its own detailed approval. The Commission underlined that the generic framework has proven reliable for other products and should offer the same benefits for the Grayscale trusts.

NYSE Arca emphasized in its filing that this adjustment would not weaken oversight but would instead align Grayscale’s Ethereum products with the same level of scrutiny already applied to other commodity-based trusts. The move was presented as a way to maintain transparency and consistency across the exchange’s listings.

The SEC’s reasoning also connects to what Chairman Paul Atkins once described as the “Innovation Exemption.” He argued that regulatory flexibility is necessary when new financial products emerge, as overly rigid oversight can stifle innovation and progress. The Grayscale decision reflects this philosophy, as it recognizes innovation in Ethereum-based ETFs while still maintaining a framework that protects investors. By treating them under the same rules as other commodity trusts, the SEC reinforces both innovation and fairness in the market.

Market analysts see the decision as a continuation of the regulatory path that has slowly opened the door to crypto-linked financial products in the United States. It also highlights the balance that regulators are seeking between embracing financial innovation and maintaining robust investor protections.