Crypto Giants Clash with SEC Over ETF Approval Rules! 😱

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Three prominent financial establishments, VanEck, 21Shares, and Canary Capital, have taken it upon themselves to pen a letter to the U.S. Securities and Exchange Commission (SEC), expressing their disquiet over the approval process for new exchange-traded funds (ETFs). Quite the bold move, wouldn’t you say? 😏

The missive, shared by the ever-vigilant James Seyffart on the social platform X, reveals that the SEC once adhered to a “first-to-file, first-to-approve” rule when selecting which ETFs might see the light of day. A rather efficient system, one might think—yet, alas, the crypto ETF issuers who were quick off the mark were often granted approval first, giving them a rather unfair advantage over the competition. How dreadfully scandalous!

This practice, dear reader, is precisely how the Bitcoin and Ethereum ETFs initially gained prominence, with the early birds receiving the greatest share of the spoils. Such is the privilege of the top-tier issuers—how terribly convenient for them. 🤔

However, it seems the SEC has decided to throw a proverbial spanner in the works, adopting a new method of approval that is not only harming smaller firms but also slowing the once-booming growth of the ETF market. How terribly ungentlemanly, one might say!

The SEC’s favoritism is most decidedly undermining the innovation in the ETF market, much to the detriment of those eager young firms looking to make their mark.

— VanEck (@vaneck_us) June 6, 2025

In their letter to SEC Chairman Paul Atkins, the firms assert that the current approach stifles competition, leaving smaller or newer firms with little chance to shine. If the established giants hold all the cards, they will attract the lion’s share of investors and maintain a stranglehold on the market, thereby restricting the availability of fresh and lucrative ETF options. Ah, the shame of it all! 😒

Imagine, dear investor, if smaller firms could more easily launch new ETFs. There would be a veritable cornucopia of options, some of which might even offer rather splendid returns. But alas, such dreams remain in the realm of ‘what could have been.’ 😤

Let Us Have Fair Crypto ETF Approvals, Sir!

The letter also cautions that the SEC’s current method might very well deter companies from even attempting to create new ETFs. Oh, the horror! Should this trend continue, investors will be left with fewer choices, and thus, fewer opportunities to earn a decent return. The firms call upon the SEC to revise its process, ensuring fairness and encouraging the birth of new crypto ETF issuers. How dreadfully reasonable of them! 😇

Should the SEC take heed, traders and investors alike would benefit from a broader selection of ETFs, enabling them to better manage their risk and, dare we say, secure superior returns. Yet, as of this moment, no statement from the SEC has been forthcoming. A most curious silence, don’t you think?

Moreover, the letter has been dispatched to other commissioners, including the ever-diligent Hester Peirce, who has long advocated for more transparent crypto legislation. Should the U.S. regulator heed the advice, the crypto ETF world may find itself with a more predictable approval timeline, and perhaps even allow early filings to enjoy a competitive edge. One can only dream, my dear!

In the meantime, spot BTC and ETH ETFs continue to show mixed results. For instance, BlackRock’s BTC ETF, despite being the leader in inflows for months, failed to register any new inflow on the most recent day. A most peculiar turn of events, indeed! 🙄

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2025-06-07 00:41