Crypto ETF Issuers Urge SEC to Restore ‘First-to-File’ Rule

Asset managers VanEck, Canary Capital, and 21shares have made a request to the US Securities and Exchange Commission (SEC), which could change the dynamics of ETF approvals moving forward. Notably, these crypto ETF issuers are among the first to have filed for funds, which would provide institutional investors with exposure to some crypto assets besides Bitcoin and Ethereum.

Crypto ETF Issuers Request SEC Return to Former Rule

In an X post, VanEck shared a letter that the firm, along with asset managers Canary Capital and 21Shares, sent to the SEC, urging the Commission to reinstate the first-to-file approval principle regarding the submission of registration statements. They claimed that this move will again reaffirm the SEC’s commitment to “nurturing a vibrant and competitive financial marketplace.”

SEC favoritism undermines innovation in the ETF market. pic.twitter.com/HM7P2Dm0XP

— VanEck (@vaneck_us) June 6, 2025

This first-to-file approach is one in which the SEC grants approval in the order in which issuers filed their S-1 forms for approval. The crypto ETF issuers noted that the agency’s recent failure to follow this practice has frustrated the regulatory principles of “innovation, fairness, and competition.”

These firms remarked that when the SEC plays favorites, it costs ETP sponsors money and makes the ETF marketplace less fair. They cited recent cases where the Commission has departed from the practice, which, interestingly, all relate to crypto ETPs.

The first case was the Bitcoin futures ETFs in 2021. Meanwhile, the second and third cases were the Spot Bitcoin ETFs and Spot Ethereum ETFs last year. Although BlackRock’s filing revived interest in a potential Bitcoin ETF, other crypto ETF issuers, such as VanEck, had filed to offer such a fund years earlier.

Thanks to the SEC approving all the funds at once, the world’s largest asset manager ended up taking the largest market share of the Bitcoin ETFs, despite being one of the last to file its application. As CoinGape recently reported, BlackRock’s Ethereum ETF also boasts the largest net assets.

The First To File For Other Altcoin ETFs

Notably, these crypto issuers have been the first or among the first to file for other altcoin ETFs. For instance, the three of them are among the first to file for a Spot Solana ETF, with the SEC acknowledging their respective filings on the same day.

Similarly, 21Shares and Canary Capital were among the first to file for a Spot XRP ETF. Canary Capital was also the first to file for a Litecoin and Sui ETF. As CoinGape reported, the SEC recently delayed its decision on the Sui ETF, similar to its decision on other filings.

Bloomberg analyst James Seyffart suggested that the SEC would still likely approve all these filings from the crypto issuers at the same time. Essentially, approval of all these funds will be made by the last deadline for a decision on the first issuer to file their registration statements.