Despite the ongoing government shutdown in the United States, several new cryptocurrency exchange-traded funds (ETFs) are anticipated to launch this week. Sources close to the matter indicate that the Canary Litecoin ETF, Canary HBAR ETF, and Grayscale Solana Trust ETF are slated for introduction.
SEC Guidance and New Regulatory Landscape
This development follows new guidance released by the Securities and Exchange Commission (SEC) on October 9th. The guidance, issued a week after the government shutdown commenced, permits companies aiming to go public to submit S-1 registration statements without a delaying amendment. Under normal circumstances, such a change would typically prevent filings from becoming effective within a 20-day period, thus allowing for the SEC's comment and approval process.
The new regulation allows companies to launch their ETFs directly after the 20-day period, provided they are confident in the accuracy and completeness of their applications. However, this accelerated process introduces a potential risk of lawsuits from investors if any incorrect or incomplete filings are overlooked by the SEC.
Expedited Approval Processes for Crypto ETFs
Several regulations previously approved by the SEC before the shutdown have expedited the application process for crypto ETFs. The agency approved a rule change concerning the listing and trading of commodity-based trust shares, a request made by three exchanges. This approval has now cleared the path for numerous crypto ETF applications to commence trading more rapidly, bypassing the standard 19b-4 process.
Specific ETF Filings and Announcements
According to insider information, Canary Capital has submitted two separate Form 8-A filings for Litecoin and HBAR earlier this week. These filings are crucial for the listing of the respective S-1 registration statements on the exchange.
Furthermore, Multicoin Capital partner Kyle Samani announced the launch of the Bitwise SOL Staking ETF on the X platform (formerly Twitter). However, this post was subsequently deleted shortly after its publication.
Expert Outlook and Potential Limitations
Industry experts express a degree of caution regarding the likelihood of a widespread wave of crypto ETF launches this week. A source familiar with the application process commented, "The SEC may not be at the same level with other assets. Therefore, this week's action may be limited to certain ETFs." This suggests that while some ETFs are poised for launch, the overall volume might be constrained.