Multiple crypto exchange-traded funds (ETFs) are set to launch this week despite the government shutdown, with investment products based on Solana (SOL), Litecoin (LTC) and Hedera (HBAR) looking set to begin trading as early as Tuesday.
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Big week for crypto ETFs
On Sunday night, Nate Geraci confirmed that the next two weeks will be crucial for the much-anticipated spot ETFs based on crypto funds as Solana, XRP, LTC and other ETFs are filed “all fine and ready to launch”.
Similarly, Bitwise CEO Hunter Horsley, hinted that this week will be a “Big Week,” indicating progress related to his Solana Staking ETF. It’s worth noting that the crypto community is awaiting US Securities and Exchange Commission (SEC) approval for investment products following numerous ETF applications filed over the past few months.
Between August and September, the regulatory agency pushed back the deadline for a decision on most requests by two months, moving the key dates to mid-October and mid-November. However, the government shutdown, which began on October 1, has reduced the chances of the products getting the green light during the expected time frame.
On Monday morning, ETF expert Erich Balchunas reported that multiple issuers were looking to launch their crypto-based ETFs this week, despite the government shutdown. According to a Bloomberg analyst, Canary Capital filed an 8-A for its spot Litecoin and Hedera ETFs, while Bitwise filed one for its Solana Staking ETF.
“These are the ones rumored to be up and running (with the Grayscale salt pan) this week despite the shutdown. It’s not a done deal, but obviously preparations are being made. Stay tuned,” Balchunas said.
Solana, Litecoin, Hedera products take the lead
Later, Balchunas confirmed reports that the exchange has issued listing notices for Bitwise’s Solana Staking ETF, and Canary’s LTC and HBAR ETFs for launch on October 28, while Grayscale’s Solana trust is due to convert on Wednesday. “Assuming there is no last-minute SEC intervention, this appears to be happening,” the analyst added.
Crypto journalist Eleanor is also afraid divided news, citing Canary CEO Steven McClurg as confirming that the Canary spot HBAR and LTC ETFs will begin trading on Nasdaq on Tuesday.
“Litecoin and Hedera are the next two token ETFs to go live after Ethereum,” McClurg told reporters in a statement. “We’re looking forward to tomorrow’s launch.”
Terret explained that despite the government shutdown, the startup is possible because “the operation of law does not always require an open government.”
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According to the post, Forms 8-A are “just as important” as S-1s filings: the former formally registers ETF shares under the Securities Exchange Act of 1934, while the latter registers investment products under the Securities Exchange Act of 1933.
After the NYSE approved all 8-A filings for the above ETFs on Monday, the shares can begin trading, Terret confirmed, adding:
“Here’s the key: Issuers have included language in their amended S-1s that allow them to automatically become effective 20 days after filing. Typically, issuers delay S-1s until the SEC takes them into effect, but the legal default is for S-1s to become effective automatically without SEC intervention. That means they don’t have to be manually approved by the agency, and filings can start on their own, even during a shutdown. So, in short, all legal the boxes are ticked and these ETFs are on track for launch.”
Featured image from Unsplash.com, chart from TradingView.com
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