Grayscale and A16z Fight Jane Street and Schwab Over Crypto ETF Speed

The differing positions of these giants are now public as the U.S. Securities and Exchange Commission (SEC) published responses to its request for comment on “Novel ETFs” (exchange-traded funds). As the name suggests, these include funds that hold unusual assets or offer less common strategies, including investments in crypto assets. In total, the SEC asked 27 questions, while the commission’s decision on two aspects of the ongoing debate will determine how quickly your next crypto ETF arrives and how good it is.

First, the positions differ on whether ETF filings should be left public until they can start trading. Second, companies took different stances on how fast the approval process should be.

AI-Powered Crypto ETF Copycats

The debate over public versus confidential filings cuts both ways. Previously, the SEC has shared market participants’ observations that “several Novel ETF filings submitted in rapid succession that are largely identical,” as AI is suspected to be helping competitors copy filings faster. Therefore, crypto giant Grayscale, which now offers 18 ETFs/ETPs (exchange-traded products), requests a confidential filing period because it would “reduce the incentive for competing sponsors to file imitative or duplicative registration statements.”