- VanEck, 21Shares push for SEC rule change.
- Aim to reinstate “first-to-file” policy.
- Could impact crypto ETP market dynamics.
The reinstatement of the “first-to-file” rule could reshape market advantages for ETP issuers, notably affecting regulatory strategies.
VanEck and 21Shares, supported by Canary Capital, submitted a letter to the SEC advocating the restoration of “first-to-file” approval procedures for digital asset ETPs. This policy previously prioritized issuers by filing order.
“The reinstatement of the ‘first-to-file’ policy could reshape market advantages for ETP issuers, notably affecting regulatory strategies.”
The firms emphasize the benefit of the “first-to-file” in gaining a competitive edge for new ETPs, which include Bitcoin and potential Solana products. Such prioritization can enable asset managers to access market liquidity swiftly.
Restoring the rule may lead to increased competition among issuers and significantly affect market share distribution. This proposed change highlights the dynamic tensions within the regulatory landscape of digital asset markets.
Financial implications include potentially accelerated approvals, favoring some issuers over others, thereby impacting institutional investment strategies. Historical precedence suggests first-to-market issuers often capture significant share.
Should the proposal succeed, digital asset ETPs would gain enhanced regulatory clarity, potentially spurring innovation. Policymakers may need to balance new product oversight with fair competitive practices.
