Crypto ETF Filings Surge: Rex-Osprey and Defiance Submit 27 Funds
On October 3, Rex-Osprey submitted six other products for 21 cryptofunds and defiance, as announced by Bloomberg’s James Seyffart via X. The Rex-Osprey squad spans individual asset strategies such as AAVE, ADA, Atom, and Ena, with some submissions including staking functions. The brochure lists 21 single-asset crypto-ETFS, showcasing the diversity of the submissions.
The submissions by Defiance included six levered funds related to crypto, with three long Bitcoin, Ethereum, and Solana, while the other three focused on short exposure. All six submissions offer 3x leverage, which has raised some eyebrows. Seyffart noted that “3x of the new ETP rules for levered ETP is not really permissible”, and that the issuer seems to be targeting options that exceed the standard 2x upper limit.
Regulatory Environment and ETF Approvals
The upswing in paperwork follows the approval of the SEC on September 17th of the generic list standards for crypto-related ETPs in CBOE, NASDAQ, and NYSE Arca. The rules aim to optimize spot crypto listings by removing 19b-4 permits and bottleneck, which has been postponed to the effectiveness of S-1 registrations. Eric Balchunas, Senior ETF analyst from Bloomberg, now sees the approvals as imminent and not justification-based.
On September 29, Balchunas wrote that Altcoin ETF registrations are “really 100%”, since generic standards expect the old 19b-4 clock dispute on the S-1 scattering to get the green light from Corp Fins. However, the current government shutdown has put everything on hold, with the SEC working with limited staff and not processing any registration declarations. According to Balchunas, “everything is on ice… it’s like a rain delay”, indicating that issuers will have to wait until the agency reopens.
Impact on ETF Registrations and Regulatory Structure
Despite the current delays, the regulatory structure remains unchanged, and ETF registrations are expected to resume once operations are back to normal. The registrations on October 3 demonstrate how generic standards have shifted the competitive focus towards winning a one-time rules race via S-1 and Corp Fin. As the crypto industry continues to evolve, the surge in ETF filings is a testament to the growing interest in cryptocurrency investments.
For more information on the latest developments in crypto ETFs, visit https://cryptoslate.com/rex-osprey-and-defiance-file-27-crypto-etfs-including-staking-and-3x-leverage/
