Key Insights
- •The SEC introduced new guidance on November 14 that allowed issuers to expedite the effectiveness of Altcoin ETF registrations through Section 8(a) auto-effective routes.
- •Bitwise’s XRP ETF emerged as the next product positioned to leverage the streamlined framework, following Canary Capital’s record-breaking debut.
- •The guidance established two independent gates for Crypto ETF launches: registration statement effectiveness and exchange listing approval, differentiating it from generic standards approved earlier in 2025.
SEC Creates Dual-Gate Framework for Altcoin ETF Launches
The Securities and Exchange Commission (SEC) released guidance on November 14, creating a faster pathway for altcoin ETF registrations to become effective. Bloomberg senior ETF analyst Eric Balchunas noted that the SEC guidance allowed issuers to expedite the effectiveness of filings to clear the backlog. Bitwise’s XRP ETF stood next in line to benefit from the framework.
The November 14 guidance established two separate approval mechanisms for Crypto ETF products. The first gate governed registration statement effectiveness under the Securities Act. Issuers could remove delaying amendments and include Rule 473(b) language to trigger automatic effectiveness after 20 days, as specified in Section 8(a). The US SEC confirmed that it would not object to the omission of Rule 430A pricing during this process.
The second gate controlled exchange listings under the Exchange Act. Generic listing standards adopted in September allowed exchanges to list eligible spot commodity and crypto products without individual 19b-4 orders. Products outside these parameters still require bespoke exchange approval. The shutdown guidance addressed when registration statements became effective. Generic listing standards determined whether exchanges needed special SEC rule approval. Both layers operated independently but required navigation for successful launches.
Second Wave of XRP ETFs Incoming, Capital Rotation Might Accelerate
Canary Capital’s XRP ETF launched on November 13 with the strongest debut volume of any 2025 ETF to date. The altcoin ETF registered $58 million in first-day trading volume and drew $245 million in inflows. Balchunas confirmed XRPC barely edged out Bitwise’s Solana ETF BSOL, which recorded $57 million in day-one volume.
Franklin Templeton and 21Shares stripped delaying language from their XRP filings to start 20-day effectiveness clocks. Bitwise and CoinShares appeared on DTCC registries in pre-launch status. None achieved effectiveness or live listings as of November 14. A second wave of XRP products awaited final registration steps before they could begin trading.
Bitcoin ETF products shed $866.7 million in outflows on November 13, while Canary’s XRP ETF pulled $245 million in inflows. The Bitcoin products lost nearly $2 billion in net flows throughout November, while Solana ETFs captured $171 million during the same period.
Shifting Focus Towards Altcoin ETFs
The pattern suggested capital rotation from Bitcoin into newly launched Altcoin ETF products. This movement is significant, as ETF flows provide price support for underlying assets. Additional Crypto ETF debuts could accelerate rotation and create momentum for altcoins relative to Bitcoin.
Bitwise filed for a spot Chainlink ETF that appeared on DTCC’s registry, but had not submitted the final 8-A form. Grayscale proposed converting its Chainlink Trust into a staking ETF under the ticker GLNK. Both products remained at the S-1 stage without filing exchange rule documents or achieving effectiveness.
21Shares advanced a Dogecoin ETF with ticker TDOG through an amended S-1 and Nasdaq 19b-4 proposal. The physically backed structure would pay management fees in DOGE. The company confirmed that the launch depended on the effectiveness of the S-1 filing and SEC approval of the exchange filing.
Polkadot and Sui ETFs from 21Shares reached similar stages with DTCC pre-launch listings. VanEck, Fidelity, and Franklin Templeton filed for additional Solana products through Cboe BZX. The SEC extended decision deadlines into late 2025 for these non-staking SOL trusts. Franklin Templeton’s crypto index ETF could add Solana and XRP exposure once regulatory steps are completed. Bitwise pursued conversion of its 10-coin index fund into an ETF under streamlined rules.
The November 14 guidance distinguished between registration effectiveness and exchange listing requirements, clearing both gates for altcoin ETF issuers to start trading. Products meeting generic listing criteria avoided individual 19b-4 orders but still required effective registration statements and exchange certification.