SEC Urged to Reinstate First-to-File Rule for Crypto ETFs

VanEck, along with 21Shares and Canary Capital, has requested the US SEC to reinstate the first-to-file approval rule for crypto ETFs, highlighted in a public letter dated June 6, 2025.

The appeal matters as it could reshape the approval process, enhancing fairness and innovation. The request underscores the impact on competitive positioning in the crypto ETF market.

VanEck, 21Shares, and Canary Capital jointly urged the SEC to adopt the “first to file, first to approve” rule for crypto ETFs. Such a rule was historically used until multiple ETFs began being approved simultaneously. The letter was made public through VanEck’s Twitter account on June 6, 2025.

The involved parties argue that current practices stifle market innovation and increase costs. The reinstatement would prioritize early filings, potentially altering financial outcomes for asset managers. Currently, larger firms like BlackRock dominate after synchronized approvals.

Industry participants could see increased incentives for innovation under a first-to-file framework. Smaller companies might regain financial advantages by introducing unique products more rapidly. The immediate effects touch financial motivations, competitive practices, and market dynamics.

Approving all ETFs simultaneously incentivizes replication rather than original innovation, according to VanEck.

While no regulatory changes have emerged immediately, the SEC’s decision could influence the long-term landscape of crypto fund management. Historical precedents, such as ProShares’ market dominance in 2021 following early ETF approval, illustrate the stakes involved.

Potential outcomes include shifts in market influence and investment flows as smaller entities could re-emerge stronger. Historical trends show early market entry often correlates with significant financial benefits, which could be revitalized with rule reinstatement.