ETF issuers VanEck, 21Shares, and Canary Capital have urged the US Securities and Exchange Commission (SEC) to revert to the 'first-to-file' principle for approving ETF applications. They argue that abandoning this principle stifles competition and innovation, hindering investor choice and market efficiency. In their letter, they emphasize that diminished incentives for new product development could compromise the SEC's mission of protecting investors and facilitating market order. Despite growing institutional interest in altcoin and staking ETFs, the SEC has delayed decisions on several applications, including Grayscale’s spot ETF, which is now pushed to October. Analysts note that the SEC typically takes the full allotted time to respond to these filings. The ongoing delays reflect broader concerns about the SEC's regulatory approach to innovation in the ETF space, especially as the market continues to evolve with new applications seeking approval.

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