SEC Releases New Guidance That May Accelerate Pending Crypto ETF Approvals

SEC Clarification on Crypto ETF Filings: The SEC has provided guidance that may allow crypto ETF issuers to expedite their registration statements, potentially alleviating the backlog of over 900 applications caused by the recent government shutdown.

Impact of the Government Shutdown: The shutdown, which lasted from October 1 to November 12, delayed the launch of several crypto ETFs, prompting issuers to utilize an automatic approval mechanism for faster market entry.

New ETF Launches: Following the SEC's guidance, several new crypto ETFs, including those from Canary Capital, Bitwise, and Grayscale, have successfully launched in November, with the latest being Canary Capital’s spot XRP ETF.

Future of Crypto ETF Approvals: As the SEC works through its backlog and issuers accelerate their filings, the frequency of new crypto ETF launches in the U.S. is expected to increase significantly.