What to Know:
- Crypto ETF issuers are leveraging a procedural route to launch funds without direct SEC approval.
- Fidelity and Canary Capital have updated filings, potentially leading to the first XRP fund as early as November 13.
- The SEC’s engagement with specific filings will determine which funds can launch without the government fully reopening.
The race to launch crypto ETFs in the U.S. market is heating up, with issuers finding innovative ways to navigate regulatory hurdles. Specifically, a procedural tactic is being used that doesn’t require the SEC’s explicit green light, potentially accelerating the launch of various crypto investment products. This approach could pave the way for the first XRP fund as soon as November 13.
Issuers are updating their S-1 registration statements to include “no delaying amendment” language. Under securities law, these filings become effective after 20 days unless the SEC intervenes. The recent listing of four crypto ETFs using this method has spurred a new wave of filings.
On Thursday, Fidelity submitted an updated S-1 for its spot Solana ETF, and Canary Capital did the same for its XRP ETF. The SEC’s level of engagement with each application will play a crucial role. While the SEC has already reviewed filings related to Solana, HBAR, and Litecoin ETFs, the XRP application has seen less interaction.
I think it’s possible we see a bunch of the funds launch next month. And that could be true whether or not the government reopens. But there are funds with filings that simply have not yet received any feedback from the SEC on their S-1s (prospectuses) and I’m not sure that they can launch without the SEC getting back to work, said James Seyffart, ETF analyst at Bloomberg Intelligence. So yes a bunch will likely launch next month but there are some that are simply unlikely to launch without the government reopening.
The potential launch of these ETFs marks a significant step forward for the crypto industry. It provides investors with new avenues for exposure to digital assets like Bitcoin and XRP. Whether this momentum continues depends on the SEC’s response and the broader regulatory landscape.
Source: Original article
