VanEck, Canary Capital, and 21Shares have jointly requested the U.S. Securities and Exchange Commission (SEC) to reinstate the "first-to-file, first-to-approve" system for cryptocurrency exchange-traded funds (ETFs). In letters sent in early June 2025 to SEC Chair Paul Atkins, these ETF issuers highlighted that the current simultaneous approval process deprives early applicants of competitive advantages and creates unfair market dynamics.
The companies argued that reinstating the original approval framework would provide predictable timelines and benefit early filers who bear higher initial costs. This request comes amid ongoing delays in SEC approvals, with analysts like Bloomberg’s James Seyffart suggesting that the earliest ETF approvals for assets such as Solana (SOL), Bitcoin (BTC), and Ethereum (ETH) are unlikely before late Q4 2025.
The letters also emphasize that reinstating the first-to-file system is crucial for fostering innovation and maintaining a fair competitive landscape. It could notably influence market positioning and fund allocation strategies for Solana-based ETFs, currently pending approval, as well as Bitcoin and Ethereum ETFs. Additionally, the filings around other emerging assets like Tron point to increasing diversification efforts by crypto ETF issuers.
An important concern raised is that the SEC’s current simultaneous approval approach could favor large entities, disadvantaging smaller ETF issuers and stifling competition. This shift may lead to more concentrated market shares following regulatory decisions. Historical precedent suggests first movers typically secure dominant positions affecting liquidity and fund sizes.
VanEck's CEO Jan van Eck remarked that restoring the first-to-file queue system is important to offer a predictable and competitive review timeline, which could reshape cryptocurrency market dynamics significantly. Overall, the outcome of this regulatory debate will influence not only how ETFs enter the market but also broader investor strategies and innovation availability within the crypto ETF sector.