The U.S. Securities and Exchange Commission (SEC) has released new guidelines that allow cryptocurrency ETF issuers to expedite the effectiveness of their registration applications following the conclusion of the prolonged government shutdown. This move paves the way for a quicker launch of new exchange-traded funds, including the anticipated Bitwise XRP-ETF.
This is reported by Finway
SEC Explains New Procedure for Applications After Shutdown
On November 13, the SEC published detailed recommendations for reviewing over 900 registration applications submitted during the temporary suspension of government operations. According to this document, if an issuer removed the amendment delay clause from the registration form during the shutdown or submitted a new form without this clause, such application will automatically become effective after 20 days in accordance with section 8(a). The SEC will not require any additional actions, even if the documents lack information under rule 430A.
- Issuers seeking to expedite effectiveness may add an amendment delay and request acceleration under rule 461.
- Applications submitted during the shutdown will be processed in the order they were received, and prior post-effective amendments will automatically become effective unless the issuer requests a delay.
Crypto-ETF Market Gains Momentum
Bloomberg analyst Eric Balchunas emphasized that the SEC’s new clarifications will unlock a significant number of applications that accumulated during the shutdown. He noted that some crypto-ETF issuers who have not yet met the 8a requirement will be trying to do so as quickly as possible. Balchunas particularly highlighted the potential launch of the Bitwise XRP-ETF, which could be the next fund in the market.
“My guess is that some of those crypto-ETFs that haven’t met the 8a requirement will try to do so as quickly as possible. Bitwise XRP, I think, is next in line…” Balchunas stated.
The prolonged U.S. government shutdown, which lasted from October 1 to November 12 and became the longest in the country’s history (43 days), led to delays in the launch of cryptocurrency funds that were planned for market release back in October. In response, issuers began utilizing the automatic approval mechanism for applications – updated S-1 forms without amendment delays that become effective after 20 days if the SEC does not issue objections.
Thanks to this mechanism, new crypto funds from companies like Canary Capital, Bitwise, and Grayscale appeared in the market as early as November. On November 13, the American market welcomed another product – a spot XRP-ETF from Canary Capital, whose listing on Nasdaq was approved by the SEC and implemented through automatic approval.
The updated technical clarifications from the SEC create favorable conditions for a more dynamic development of the cryptocurrency ETF market in the U.S. and open opportunities for new players who had to wait due to the prolonged shutdown.