This week, the SEC voted in favor of proposed rule changes by three national securities exchanges, allowing them to adopt generic listing standards for new crypto ETFs.

09/22 update: The bitcoin price has fallen sharply, dropping around 3% in mere minutes and plunging under $112,000 per bitcoin from a peak of almost $118,000 just last week.

Bitcoin’s sudden price dive has hit the wider crypto market, wiping $200 billion from the combined market since Friday.

“Bitcoin is currently entering a correction phase,” Linh Tran, a market analyst with XS.com, said in emailed comments. “This pause is seen as necessary to absorb profit-taking pressure, reduce short-term leverage, and lay the groundwork for a more stable price base.”

Last week, the Federal Reserve met expectations when it cut interest rates by 25 basis points, with a reduction of interest rates generally seen to be supportive of risk assets like bitcoin and crypto—though a a nightmare scenario could send bitcoin into a “death spiral.”

“This signaled the end of the tightening cycle, but Fed chair Jerome Powell’s cautious remarks that future policy would remain data-dependent tempered market expectations for the pace of easing. This explains why bitcoin stalled, even though a lower interest rate environment typically benefits risk assets.”

The bitcoin price correction was expected following the Federal Open Market Committee (FOMC) meeting, according to some analysts.

“While the FOMC meeting sparked optimism for a Q4 breakout, bitcoin was more likely to enter a 1-2 week consolidation phase immediately afterward,” Markus Thielen, the chief executive of 10x Research, said via email, pointing to a rise in leveraged longs that are increasingly vulnerable as liquidity thinned and raising the risk of a downside break.

“On-chain metrics provide further evidence that market activity is once again fading,” Thielen added. “The real question: how long can this consolidation drag on?”

The SEC approval “will open up the floodgates,” Steve Feinour, a partner at Stradley Ronon, told Reuters.

“The big trigger this week was the SEC’s approval of generic listing standards for crypto ETFs on the likes of NYSE, Nasdaq, and Cboe,” Nic Puckrin, macroeconomics analyst and founder of The Coin Bureau, said in emailed comments.

“Until now, every ETF had to go through a lengthy, case-by-case process. Now, new products can be listed in just 75 days. This is significant for funds tied to ethereum, solana and dogecoin, or even diversified crypto baskets, as it dramatically reduces the barriers.”

Alongside the rule change and proving there is demand for crypto ETFs beyond bitcoin and ethereum, the first U.S. ETFs to offer spot exposure to Ripple’s XRP and dogecoin started trading on Thursday, generating about $55 million in trading volume.

The REX-Osprey XRP ETF, listed on Cboe under the ticker XRPR, saw the largest debut volume of any ETF launch this year, according an X post by Bloomberg Intelligence senior ETF analyst Eric Balchunas.

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In August, NovaDius Wealth president Nate Geraci said it makes “zero sense” for BlackRock to ignore cryptocurrencies beyond bitcoin and ethereum.

“Otherwise, they’re basically saying bitcoin and ethereum are only ones that will ever have value. Bold,” Geraci posted to X.

BlackRock’s spot bitcoin ETF exploded onto Wall Street in early 2024, becoming the fastest growing ETF ever and now holds almost 750,000 bitcoin worth $88 billion on behalf of investors.

BlackRock, which manages around $10 trillion worth of assets for investors, spearheaded Wall Street’s campaign to bring a long-awaited spot bitcoin ETF to market in 2023, with its IBIT bitcoin fund dominating a fleet of funds that launched in January 2024.

BlackRock’s fund alone holds almost 4% of the 21 million bitcoin that will ever exist, which some have warned could be giving BlackRock outsized control over the network.