Several new spot crypto exchange-traded funds (ETFs) tracking Solana, HBAR, and Litecoin are expected to launch this week, despite limitations on U.S. government operations due to a shutdown that affects the Securities and Exchange Commission (SEC).
The upcoming lineup includes the Canary Litecoin ETF, Canary HBAR ETF, and the Grayscale Solana Trust ETF, according to individuals familiar with the filings.
Streamlined Approval Process Fuels Launch Wave
This wave of launches follows SEC guidance issued on October 9, which permits firms to file S-1 registration statements without a delaying amendment. This means that funds can automatically become effective after a 20-day period, provided issuers accept the risk of any unresolved comments from the SEC.
The New York Stock Exchange (NYSE) posted listing notices on Monday for four ETFs, indicating that trading could commence as early as Tuesday. These listings were unexpected, given the partial closure of federal agencies.
Innovations in Crypto ETFs
These new ETFs will be the first for new crypto assets since the approval of spot Bitcoin and Ethereum funds in 2024. Notably, some of the upcoming ETFs incorporate staking features, which represents a significant first for traditional exchanges.
Prior to the shutdown, the SEC had approved new exchange listing standards designed to expedite crypto ETF approvals by bypassing lengthy 19b-4 filings. Consequently, a substantial number of pending ETF applications may now progress to market more rapidly.
Filings and Issuer Confidence
Filings, known as Form 8-As, began appearing on Monday. These included two filings from Canary Capital for its Litecoin and Hedera products. Grayscale's Solana Trust ETF is reportedly slated for a Wednesday launch.
While the exact timelines for other assets remain uncertain, market participants have indicated that confident issuers are proceeding under the new guidance. Even with reduced staffing levels during the shutdown, the SEC's existing processes appear to be sufficient to allow ETF listings to move forward.