The U.S. Securities and Exchange Commission (SEC) has approved a rule change allowing Grayscale’s Ethereum Trust ETF and Ethereum Mini Trust ETF to operate under the agency’s new generic listing standards. The adjustment, which took effect immediately, eliminates the need for separate SEC approvals for these products and aligns them with a broader regulatory framework designed to accelerate crypto ETF approvals.
The approval came after NYSE Arca, the exchange hosting the products, filed to shift the ETFs from Rule 8.201-E (Non-Generic) to Rule 8.201-E (Generic) on September 19, 2025. This move simplifies the operational landscape for Ethereum-based ETFs, removing duplicative filings and streamlining oversight. Under the new framework, both funds can continue trading without case-by-case authorization, significantly reducing bureaucratic hurdles.
A Shift Toward Efficiency and Transparency
The Grayscale Ethereum Trust ETF and Mini Trust ETF were first approved in 2024, but under conditions tied to their individual approval orders. By moving them to the generic standard, NYSE Arca ensures that both products operate under the same streamlined rules already applied to other commodity-based trust shares. The change also prevents future delays caused by repeated filings, enhancing operational efficiency.
This development is part of a broader SEC policy shift. The regulator has recently expanded generic listing standards for commodity-based trust shares, making it easier for qualifying crypto products to enter the market. The framework is not limited to Ethereum; the SEC confirmed that faster approval timelines now extend to a range of digital assets, including XRP, Shiba Inu (SHIB), and Hedera (HBAR).
Immediate Effect and Oversight
One of the most notable aspects of this approval is the SEC’s decision to waive the standard 30-day waiting period. Instead, the amendment took effect immediately, reflecting the agency’s view that the change benefits the public without introducing additional regulatory risks.
However, the SEC stressed that the funds remain subject to strict oversight. The ETFs must comply with safeguards against fraud and market manipulation, and the SEC retains the authority to halt or reverse the rule change if necessary.
Mixed Signals for Other Crypto ETFs
While Ethereum-based ETFs have benefited from this streamlined process, not all digital assets are receiving the same treatment. The SEC recently delayed its decision on Grayscale’s proposed Cardano ETF, highlighting that regulatory scrutiny remains uneven across the sector. This contrast suggests that while Ethereum is gaining smoother approval pathways, other cryptocurrencies may continue to face extended review timelines.
The decision marks a milestone for Ethereum’s integration into mainstream financial products. By placing Grayscale’s ETFs under the generic standard, the SEC is signaling a willingness to modernize its approach to crypto regulation while maintaining investor protections. For institutional and retail investors alike, the change could pave the way for increased transparency, liquidity, and accessibility in Ethereum investment products.