Crypto asset manager Grayscale Investments anticipates a significant expansion in the digital asset market, driven by new regulatory clarity from the U.S. Securities and Exchange Commission (SEC). The firm’s latest analysis suggests that a streamlined approval process for altcoin exchange-traded products (ETPs) could accelerate institutional adoption and encourage diversification beyond Bitcoin and Ethereum.

SEC Eases Path for Crypto Investment Products

The optimistic outlook follows the SEC’s approval of generic listing standards for crypto ETPs on September 17. This new framework allows exchanges to list qualifying tokens without requiring a case-by-case review from the commission, creating a much faster route to market. In a report published on October 31, Grayscale noted that this change will likely trigger a substantial increase in the number of ETPs offering exposure to altcoins.

The new process is already in effect, with an ETP for Solana (SOL) actively trading under the updated standards. This successful launch sets a precedent for other major altcoins and signals that the regulatory environment is becoming more accommodating for a wider range of digital assets.

Eleven Altcoins Identified for Potential ETPs

Grayscale has identified 11 additional crypto assets that it expects will qualify for ETPs based on the new listing criteria. The firm’s report states, “Over time, the number of crypto assets that qualify under the new criteria will likely increase further.”

The list includes prominent tokens such as XRP, Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Bitcoin Cash (BCH), and Polkadot (DOT). Other qualifying assets are Dogecoin (DOGE), Stellar (XLM), Litecoin (LTC), Hedera (HBAR), and Shiba Inu (SHIB). The trend is already gaining momentum, as ETPs for Litecoin and Hedera have recently launched, further boosting investor confidence.

According to research from Grayscale and index provider FTSE/Russell, these eligible assets—alongside Bitcoin and Ethereum—could represent nearly 90% of the total crypto market capitalization. Market strategists see this development as a positive signal that could enhance liquidity, broaden investor access, and foster long-term growth across the altcoin sector.

Bitcoin is showing signs of recovery, climbing back above $109,000 after a recent dip below $107,000 triggered approximately $400 million in liquidations. The rebound follows positive macroeconomic news, as U.S. Treasury Secretary Scott Bessent confirmed that a long-awaited trade deal with China is expected to be signed in the coming week.

Trade Tensions Ease After High-Stakes Negotiations

The market optimism stems from a breakthrough between the world’s two largest economies. Tensions had escalated earlier in the month when China imposed export controls on rare earth minerals, a move it claimed was retaliation for increased U.S. tariffs. The resulting uncertainty contributed to a broad market sell-off that caused significant liquidations across the crypto market.

However, a pivotal meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) Summit in Seoul on Thursday paved the way for a resolution. Following what he described as a “truly great meeting,” Trump signaled that an agreement was close.

Bessent later confirmed the details of the 12-month agreement. Under its terms, Beijing will suspend its rare earth export controls. In exchange, Washington will halve its 20% “fentanyl tariffs” and ease other trade restrictions. The deal also reportedly includes a provision allowing U.S. investors to acquire a stake in the American subsidiary of TikTok, which is owned by the Chinese company ByteDance.

Market Responds to Positive News

Reacting to the developments, Bitcoin gained 2.62% in 24 hours, trading at around $109,777 at the time of writing. Despite the daily gain, the cryptocurrency remains down 1.07% for the week. Since Thursday, its price has fluctuated between a low of $106,376 and a high of $111,031. The asset’s market capitalization has climbed to $2.19 trillion, with a 24-hour trading volume of $65 billion.

Bitcoin’s market dominance saw a slight decrease of 0.03%, settling at 59.87%. In the futures market, total open interest fell by 1.81% to $71.21 billion. Recent liquidations totaled $113.14 million, with short positions accounting for the majority at $64.71 million, while long positions made up the remaining $48.43 million.