Sigel stated that the first-come-first-serve approach by the SEC would help the issuers plan their product launches in a much better way.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
The New York-based leading fund group VanEck is all eagerly awaiting the decision on its spot Ethereum ETF application, scheduled later today. VanEck has, however, requested the US Securities and Exchange Commission (SEC) that they should honor the order of the filings and allow them to launch before the competitors.
Matthew Sigel, VanEck’s head of digital assets research, has expressed reservations regarding the SEC’s present strategy. The SEC presently allows numerous firms to concurrently launch financial products, like ETFs, irrespective of their filing times. Adhering to this approach, the regulator greenlit the debut of all spot Bitcoin ETFs on January 11.
However, Sigel stated that VanEck was the first to file the S-1 registration statement. Thus, it fully expects to receive comments and “go first”. “We were first to file and we expect to be first to respond to comments and first out the door. When you filed used to mean something, and it should again,” Sigel stated in an X space.
Sigel further stated that the first-come-first-serve approach would help the issuers plan their product launches in a much better way. He said that waiting for approvals from others causes early files to incur additional costs and legal fees.
Sigel observed that the SEC’s choice to approve all spot Bitcoin ETFs concurrently didn’t prevent it from “picking winners,” as certain funds now boast substantial assets under management (AUM) despite the simultaneous approvals.
The VanEck executive stated that respecting the filing queue would be a matter of fairness and also essential to maintain orderly market practices.
“It creates an uneven playing field for issuers who filed earlier and had to wait longer. Those who filed months ago had to keep their applications updated and compliant for a longer period, incurring more costs and legal fees compared to later filers,” Sigel argued.
Earlier this month on May 15, Coinbase Institutional Research Analyst David Han stated that the SEC doesn’t need to approve products simultaneously.
Other market analysts like ETF Store President Nate Geraci have proposed a prolonged approval process wherein the SEC first approves 19b-4 filings and later responds to the S-1 registrations.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
