Crypto ETF Issuers Urge SEC To Reinstate First-To-File Rule

VanEck, 21Shares, and Canary Capital Partners requested the SEC on June 6, 2025, to return to the “first-to-file” rule for ETF approvals in the United States.

ETF issuers demand fairness in approval processes, potentially altering market dynamics and competitive landscapes.

VanEck, 21Shares, and Canary Capital issued a joint letter to the SEC highlighting concerns over the recent approval process departure from the “first-to-file” rule. The letter questioned the fairness in how filings are processed, emphasizing the implications for fair competition. They argue that without a first-come-first-serve approach, it distorts the foreseeable market dynamics and affects financial outcomes for firms.

The letter addressed to SEC Chair Paul Atkins insists on a return to a queue-based system, vital for the approval of new products like Solana ETFs. The recommendation aims to restore competitive fairness and predictability in the crypto exchange-traded products (ETP) market.

Immediate effects hit firms with pending applications such as VanEck and 21Shares, as they are expecting regulatory clarity. The financial ramifications are stark, notably highlighted by the first U.S. Bitcoin futures ETF, which gained a significant market share owing to its timely approval.

The financial community expresses concern, pointing out the uneven playing field could discourage innovation and investment. Market reactions, notably in asset flows like Bitcoin and Ethereum ETFs, underscore how approval timing critically determines market success.

Historical data reinforce the importance of first-mover advantages in ETF launches. The eventual outcomes include potential shifts in asset allocations and modified investment strategies, driven by how the SEC decides on these requests. Envisioning a return to earlier practices could harmonize Regulatory clarity, market stability, and investor confidence in emerging digital asset funds.

Duncan Moir, President, 21Shares, stated, “Restoring the first-to-file principle is crucial for maintaining a competitive and fair market landscape for all ETP sponsors.”