VanEck, 21Shares, and Canary Urge SEC to Rethink Crypto ETF Approval Rules

VanEck, 21Shares, and Canary urge SEC to ensure fair ETF approvals

Fridah Kangai
June 8, 2025
11:34 am

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

VanEck, 21Shares, and Canary claim SEC favors top ETF issuers
Letter urges SEC to restore fair crypto ETF approval process
Firms warn investor choice is shrinking due to current SEC rules

VanEck, 21Shares, and Canary Capital have written to the U.S. Securities and Exchange Commission to ask it to revise its process for approving crypto exchange-traded funds. In a letter sent to Chairman Paul Atkins of the SEC, the three companies stated that the agency’s new process benefits bigger businesses more than smaller ones.

According to a copy of the letter shared by ETF analyst James Seyffart, the firms stated that the SEC had historically followed a “first-to-file, first-to-approve” model. Issuers who applied quickly for ETFs during the creation of Bitcoin and Ethereum ETFs enjoyed an edge due to this method. Smaller companies were able to compete effectively because they established themselves first in the field.

VanEck, 21Shares, and Canary have all signed a letter requesting that the SEC return to the 'first to file, first to approve' standard which was the standard before the Bitcoin and Ethereum ETF launches https://t.co/d427axOXdC
— James Seyffart (@JSeyff) June 6, 2025

On the other hand, the trio now thinks the SEC is abandoning the old system to favor large and wealthy companies. They say new companies face greater difficulties entering the ETF market, which lowers competition. As a result, they explain, much fewer crypto ETFs could be offered, and innovation could be negatively impacted.

Smaller Firms Warn of Unequal Playing Field in Crypto ETF Market

The letter emphasizes that if only large firms are granted early approvals, they will capture the most investor interest and dominate the market. This may result in the larger issuers having more power while weaker issuers become less critical. It is believed by the firms that the current approach leads to an unbalanced landscape, dissuading others from starting work in the industry.

Besides, reducing the number of firms in the ETF market could limit what investors have to select from. A broader selection of ETFs, they argue, is essential for offering competitive returns and diverse strategies for managing risk.

These three firms are urging the SEC to take an evenhanded and clearer approach. They believe that doing so will encourage broader participation and maintain a fair playing field in the crypto ETF market. The SEC has yet to provide any official comment about the letter presented by the relevant firms.

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