- Plea to SEC from asset managers for fair competition rules.
- Crypto ETFs need “first-to-file” reinstatement.
- Market fairness concerns highlighted by new ETF rules.
VanEck and 21Shares have petitioned the SEC to reinstate the “first-to-file” rule for crypto ETFs, citing fairness issues.
Petition for Fairness
VanEck, 21Shares, and Canary Capital jointly pressed the SEC to revert to the “first-to-file” method for crypto ETFs, advocating for equity in competitive markets.
The letter emphasized how the existing approach disadvantages smaller firms by favoring late filers, including influential incumbents. VanEck highlighted SEC favoritism in distorting market fairness.
Impact on Market Dynamics
Market power shifts as larger entities capture substantial shares due to concurrent approvals. VanEck and others argue this suppresses innovation among initial filers.
The current SEC policy has implications on resources allocated by smaller firms, potentially impacting future crypto ETF innovations.
Historical Context and Implications
Historical precedence from ProShares shows first-mover advantages when the policies favored early filers. This offers insights into potential market changes.
Immediate effects are felt across Bitcoin and Ethereum markets, with the potential for financial, regulatory, or technological outcomes. SEC’s decision could reshape competitive dynamics significantly.
“When the Commission plays favourites, it costs ETP sponsors money and makes the ETP marketplace less fair.” — Joint Letter from VanEck, 21Shares, and Canary Capital
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