The U.S. Securities and Exchange Commission (SEC) is studying a more orderly process for ETF approvals as the agency faces a sharp rise in new product filings.
Summary
- SEC officials want a clearer ETF process as crypto and prediction market filings increase sharply.
- Confidential filings could protect ETF issuers from copycats before new products become public.
- Prediction market ETFs remain under review while regulators seek feedback on novel fund structures.
Bloomberg ETF analyst Eric Balchunas said in a post on X that SEC Investment Management Division official Brian Daly said the agency receives about 200 ETF applications each month.
Daly made the comments during a Trillions interview with Balchunas and Joel Weber. According to Balchunas, Daly said the SEC “did a bad job with crypto” and wants to rebuild trust through an “orderly process” for novel products, including prediction market ETFs.
Confidential filings under review
Balchunas said in a second post on X that the SEC is also considering confidential ETF filings. The idea would allow some issuers to file products privately before their applications become public. That could protect early ideas and reduce copycat filings.
The SEC raised a similar issue in its public review of novel ETFs. As crypto.news reported, the agency asked whether ETF filings should stay confidential for part of the 75-day review period before becoming public. The agency said this could give applicants more room to develop products without rushing incomplete filings into the market.
Prediction market ETFs remain paused
The review comes while prediction market ETFs remain under SEC scrutiny. As crypto.news reported, the SEC delayed several prediction market ETF proposals while seeking public input on how event-based funds should be regulated. Bitwise, Roundhill Investments, and GraniteShares had filed products tied to elections and other event contracts.
The SEC’s official June 30 request asks for feedback on ETFs that invest in innovative assets or use novel strategies. SEC Chair Paul Atkins said ETF innovation depends on a “consistent, transparent, and efficient regulatory framework.” Daly also said ETF assets grew from $4 trillion in 2019 to more than $12 trillion at the end of 2025.
Crypto ETFs add to the filing wave
The agency’s review also matters for crypto funds. As previously reported, the SEC approved the T. Rowe Price Active Crypto ETF, a multi-asset product that may hold Bitcoin, Ethereum, XRP, Solana, Dogecoin, Shiba Inu, and other assets. That approval showed how crypto products are moving beyond single-asset funds.
Other issuers are also testing the new ETF path. Bitwise filed an S-1 for a spot SUI ETF, while the SEC’s generic listing standards have shortened parts of the approval process for qualifying products. The rising number of applications has made process questions more urgent.
The SEC is also reviewing wider digital asset rules. Previously, crypto.news reported that Atkins backed a limited innovation exemption for tokenized securities. That work sits beside the ETF review as the agency tries to support new products while keeping investor disclosures clear.
For ETF issuers, confidential filings could change how new products reach the market. For investors, the main question is whether the SEC can speed up reviews without weakening oversight. The current review shows the agency is trying to avoid another uneven approval cycle as crypto, tokenization, and prediction markets enter the ETF market.
