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Crypto ETFs on the Verge of U.S. Debut Despite SEC Delays

Deal Background

The long-anticipated launch of crypto exchange-traded funds (ETFs) in the U.S. has faced repeated delays, with the Securities and Exchange Commission (SEC) missing several deadlines to approve or deny applications throughout October 2025. However, a procedural workaround is now enabling some issuers to bypass the SEC's formal approval process and bring their products to market.

Motivations and Signals

Faced with the SEC's regulatory paralysis due to the U.S. government shutdown, crypto ETF issuers are leveraging a provision that allows their filings to automatically become effective after 20 days unless the SEC intervenes. This approach has already enabled four crypto ETFs from Canary Capital, Bitwise, and Grayscale to start trading earlier this week.

The success of this workaround has sparked a wave of new filings, with Fidelity and Canary Capital submitting updated S-1 registration statements for Solana and XRP ETFs, respectively. If the SEC maintains its current stance of not blocking the automatic approval process, the market could see its first XRP fund as soon as November 13.

Implications for Private Equity

The emergence of this procedural pathway for crypto ETF launches marks a new phase in the industry's efforts to gain mainstream acceptance. Rather than waiting for the SEC's formal blessing, issuers are taking matters into their own hands and leveraging legal mechanisms to bring their products to market.

This development could have significant implications for private equity firms and other institutional investors, who have been eagerly anticipating the arrival of crypto ETFs as a more accessible and regulated entry point into the digital asset space.

Outlook and Considerations

While the current momentum suggests a wave of crypto ETF launches in November, the process is not without its limitations. The SEC has not yet provided feedback on the XRP ETF filing, and the agency may still intervene to halt the automatic approval process for certain products.

Additionally, the long-term sustainability and regulatory acceptance of this workaround approach remain uncertain, as the SEC's ultimate stance on the matter is yet to be determined.

Key Takeaways

• Crypto ETF issuers are leveraging a procedural workaround to bypass the SEC's formal approval process and bring their products to market despite regulatory delays.
• This approach has already enabled four crypto ETFs to start trading, and a wave of new filings suggests more launches could come in November.
• The success of this workaround could have significant implications for private equity firms and other institutional investors seeking exposure to the digital asset space.

Sources

• CoinDesk