Crypto ETFs beyond bitcoin: ether, altcoin and index funds after the SEC's 2025 rule change

For years, the only spot crypto exchange-traded products available in the US held bitcoin, and later ether. Each one needed its own SEC approval process. In September 2025, that changed: the SEC approved generic listing standards that let exchanges list qualifying crypto ETPs much more quickly, opening the door to funds tracking other coins and baskets of coins.

This guide explains what changed, which assets qualify, what index funds are, and what to check before buying any of them. For the basics of crypto ETPs, see bitcoin ETFs explained.

What changed in September 2025

On 17 September 2025, the SEC approved rule changes by three national securities exchanges, Nasdaq, NYSE Arca and Cboe BZX, to adopt generic listing standards for exchange-traded products that hold spot commodities, including digital assets.

In practice, exchanges can now list and trade Commodity-Based Trust Shares that meet those standards without first filing a separate proposed rule change with the SEC for each product. Before, every new spot crypto ETP needed its own rule filing.

The same day, the SEC also approved:

• the Grayscale Digital Large Cap Fund, which holds spot digital assets based on the CoinDesk 5 Index; and
• options on two bitcoin ETF indexes from Cboe.

The timeline: from bitcoin to baskets

See bitcoin ETFs explained for the 2024 approvals.

The three tests a crypto asset must meet

According to the SEC’s order, a commodity an ETP holds is eligible if it meets one of these conditions:

1. It trades on a market that is a member of the Intermarket Surveillance Group (ISG), an information-sharing group of markets, and the exchange can get trading information from that member.
2. It underlies a futures contract that has been available on a CFTC-regulated designated contract market for at least six months, with a surveillance-sharing arrangement in place.
3. On an initial basis only, an existing ETF designed to provide at least 40% of its net asset value in exposure to that commodity is already listed on a national securities exchange.

The SEC explained the logic: these conditions help ensure exchanges can get the information needed to detect and deter fraud and manipulation in the underlying asset.

How crypto ETPs work behind the scenes

You buy and sell ETP shares on a stock exchange like any other share. Behind the scenes, financial firms called authorized participants have agreements with the fund that let them create new shares or redeem existing ones directly with it. This creation and redemption process is part of how ETPs are designed to trade close to the value of what they hold.

When spot bitcoin and ether ETPs were first approved, creations and redemptions had to be done in cash: the fund itself bought or sold the crypto. On 29 July 2025, the SEC approved in-kind creations and redemptions, meaning authorized participants can deliver or receive the crypto itself, as with other commodity-based ETPs. The SEC’s chairman said this would make the products less costly and more efficient.

Single-coin and index funds

• Single-asset ETPs hold one coin, such as bitcoin or ether, and track its price minus fees.
• Index or basket ETPs hold several assets according to an index, like the CoinDesk 5-based fund the SEC approved. They spread exposure across a few large coins but still move with the crypto market as a whole.

If a fund stakes the coins it holds, that adds its own risks and rules, so read the prospectus. See liquid staking explained.

How this fits with the SEC’s 2026 crypto categories

In March 2026, the SEC issued an interpretation listing many large crypto assets among its examples of digital commodities, which it said are not themselves securities. ETPs holding commodities are what the generic listing standards are built for. See is crypto a security?

The SEC’s full list of examples, based on each asset’s characteristics at the date of the release:

Two cautions. Being on this list isn’t a recommendation, and it doesn’t mean an ETP for that coin exists or qualifies: each product still has to meet the listing standards. And the SEC said its classifications reflect the assets’ characteristics as of March 2026, which can change.

Options on crypto ETPs

The SEC has also approved options linked to bitcoin ETPs: in July 2025, options on certain spot bitcoin ETPs and FLEX options, with position limits raised to up to 250,000 contracts; in September 2025, options on two Cboe bitcoin ETF indexes. Options are complex derivatives that can magnify gains and losses and can expire worthless. They’re generally not suitable for beginners. See crypto leverage and derivatives rules.

What to check before buying

1. What it holds: one coin, a basket, or derivatives such as futures rather than the coin itself.
2. Fees: compare the annual expense ratio; fees eat into returns every year.
3. Tracking: how closely the fund follows its coin or index.
4. Liquidity: trading volume and the gap between buying and selling prices.
5. Custody: who holds the underlying crypto, and how.
6. Staking: whether the fund stakes its holdings, and how rewards and risks are handled.
7. Fit: smaller coins can be far more volatile than bitcoin. Only invest what you can afford to lose.

What protection you get

SIPC protects securities and cash at a member brokerage if the broker fails, which can include ETP shares held there. It doesn’t protect you from the fund losing value, and it doesn’t cover crypto held on its own that isn’t a security. See is your crypto insured?

Taxes

ETP shares are taxed under the rules for the type of product and account. In tax-advantaged accounts, different rules apply. See crypto in your 401(k) or IRA and US crypto tax.

Outside the US, see crypto ETNs in the UK and crypto ETFs in a TFSA or RRSP.