VanEck, 21Shares, and Canary Capital have appealed to the SEC for the reinstatement of the 'first-to-file, first-to-approve' rule for crypto ETPs, citing unequal conditions in the ETF market.
Request to Restore Previous Rule
On June 6, 2025, VanEck, along with 21Shares and Canary Capital, sent a letter to the SEC in Washington advocating for a return to the 'first-to-file, first-to-approve' rule for cryptocurrency ETPs. They stated that the current situation hinders innovation due to the simultaneous approval practice observed in recent BTC and ETH ETF cases.
Impact on the ETF Market
In a joint letter, VanEck, 21Shares, and Canary Capital emphasized that the SEC's approach disadvantages smaller firms. The approval of large players initially may negatively impact the competitiveness of the ETF market, as seen from past approvals of ProShares. BTC and ETH could feel direct impacts from these regulatory changes.
Potential Shifts in Investment Landscape
Immediate market responses remain speculative; however, a change in SEC rules may influence investor behavior in the crypto ETP space. Analyses predict considerable market changes should the SEC shift its position. Historical data indicates that approval timing is significantly advantageous, which could potentially affect not only BTC and ETH but also emerging crypto assets.
All these points indicate a need to reconsider the SEC's approach to ETF approvals, which could ultimately lead to a healthier competitive environment for all market participants.
