- Several spot crypto exchange-traded funds (ETFs) began trading in early November via a procedural filing process.
- The U.S. government shutdown halted the Securities and Exchange Commission’s (SEC) formal approval process in October, pausing ETF deadlines.
- Issuers use updated S-1 registration statements with “no delaying amendment” language, triggering automatic approval after 20 days without SEC intervention.
- Fidelity and Canary Capital recently filed for spot Solana and XRP ETFs, potentially launching new funds soon if the SEC does not act.
- The SEC has reviewed some filings but has not engaged much with others like XRP, which could lead to a block on automatic approval.
In early November, several spot cryptocurrency exchange-traded funds (ETFs) started trading on U.S. markets after issuers used a procedural filing method to bypass the need for immediate approval from the Securities and Exchange Commission (SEC). This development follows a U.S. government shutdown in October that froze deadlines related to SEC decisions on spot crypto ETF applications.
Issuers filed updated S-1 registration statements, which include a “no delaying amendment” clause. This clause allows the filings to become effective automatically after 20 days unless the SEC issues a stay or requests amendments. Four ETFs—from Canary Capital, Bitwise, and Grayscale—began trading under this rule, as the SEC took no action to block them.
Following this approach, Fidelity submitted an updated S-1 for a spot Solana ETF, and Canary Capital filed for a spot XRP ETF. If the SEC continues to omit intervention, the XRP ETF could launch as early as November 13.
ETF analyst James Seyffart noted, “I think it’s possible we see a bunch of the funds launch next month. And that could be true whether or not the government reopens. But there are funds with filings that simply have not yet received any feedback from the SEC on their S-1s (prospectuses) and I’m not sure that they can launch without the SEC getting back to work.”
This procedural route has accelerated the arrival of crypto ETFs in U.S. markets despite official regulatory delays. While the SEC has reviewed filings related to Solana, HBAR, and Litecoin ETFs, it has not engaged deeply with the XRP ETF application. This lack of review could result in the SEC blocking its automatic approval.
The strategy depends on the SEC not intervening during the 20-day period after filing, but the government shutdown that paused the SEC’s work has put broader ETF approval progress on hold. Investors now await whether the momentum will continue in November or slow down without the SEC’s return to active oversight.
For the original reporting, see the linked article here.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Canary Capital to Launch XRP ETF on November 13
- Iran Cracks Down on Illegal Crypto Mining, Seizes 1,465 Devices
- Crypto Market Sentiment Edges Up Amid US-China Trade Deal
- Bitcoin Undergoes Unofficial IPO as Old Holders Rotate Out
- Europol Warns of Growing Sophistication in Crypto Crime Cases
