SEC Faces Pressure to Reinstate First-to-File Rule for Crypto ETFs

Financial firms are urging the SEC to reinstate the first-to-file rule for crypto ETFs, arguing that its current simultaneous approval approach creates an unfair advantage for latecomers. VanEck, 21Shares, and Canary Capital highlight the potential for market disruption caused by this system. The firms have claimed that BlackRock’s rapid market gains in Bitcoin and Ethereum ETF applications are a result of this dynamic, while early filers see a lack of competitiveness. They argue that this method could stifle innovation, hindering smaller companies from bringing their products to market.