Solana, Litecoin, and Hedera ETFs Launch on NYSE – A Landmark Without SEC Approval!

ETFs

The New York Stock Exchange (NYSE) has officially listed ETFs for Solana (SOL), Litecoin (LTC), and Hedera (HBAR) amid a U.S. government shutdown, marking a significant moment in cryptocurrency trading without prior approval from the SEC. This move could enhance institutional interest in these altcoins.

Key Takeaways

The NYSE has listed ETFs for Solana, Litecoin, and Hedera today.
ETF expert Eric Balchunas confirmed that listing notices have been posted for Bitwise Solana, Canary Litecoin, and Canary HBAR, with Grayscale Solana expected tomorrow.
New regulations now allow the issuance of ETFs without undergoing lengthy SEC reviews, potentially attracting more institutional investors regardless of federal shutdowns or regulatory holdups.

ETFs Source: X

NYSE Advances During Government Shutdown

This week, the New York Stock Exchange made waves by launching four spot crypto ETFs, including those linked to Solana, Litecoin, and Hedera, despite an ongoing U.S. government shutdown that has caused the SEC to pause its operations.

ETFs Source: X

Firms such as Canary Capital and Bitwise have indicated that they were fully prepared to roll out these ETFs after completing all necessary internal compliance checks prior to the shutdown. The prompt listings mean that trading can commence right away, signifying the first time altcoin ETFs are being introduced to the U.S. market without direct approval from the SEC.

This move was made possible through 8-A filings, which formally register ETF shares for trading under the 1934 Act. The NYSE has approved all 8-A filings for these ETFs, marking the final step required before trading can begin.

Moreover, the issuers incorporated provisions in their amended S-1s allowing them to automatically go effective 20 days after filing. This approach means that SEC approval isn't necessary, even amidst a government shutdown.

Understanding the Mechanism Behind This Development

The recent launches are enabled by new "generic listing standards" that the SEC approved in mid-September. These regulations allow exchanges like the NYSE to list crypto and commodity ETFs provided they meet established requirements for custody, market surveillance, and pricing without needing individual SEC assessments.

This streamlining replaces the prior two-step approach, which required separate approvals for both the exchange’s rule change and the ETF itself. These new standards are an evolution of a 2019 ETF rule, granting exchanges the authority to list funds even if the SEC is partially shut down.

Significance of This Event

These regulatory adjustments allow altcoin ETFs to be launched without the delays typically associated with SEC reviews. For institutional investors, this translates to faster access to digital assets like Solana and Hedera, as well as simpler diversification strategies that do not necessitate off-shore products.

This milestone has been celebrated as a pivotal breakthrough in regulation, demonstrating that crypto is gaining traction in mainstream finance, even amid political and bureaucratic obstacles. The first trading day will be a crucial test of both investor interest and the effectiveness of the SEC's new expedited approval system.