The current process allows ETFs that meet certain conditions to jump into the markets without requiring a complicated waiver request from the regulator, and that approach has seen explosive growth from $4 trillion in 2019 to $12 trillion in 2025.
“It is designed to build a track record that could be used to justify policy changes in the future that would allow ETFs focused on a broader universe of assets,” TD Cowen policy analyst Jaret Seiberg said in a note to clients. He said the broader range of ETFs could include “those based on event contracts, crypto assets and single stock strategies.”
Atkins’ SEC has made it a priority to embrace new technologies, especially cryptocurrency, for which it is working on major policies to allow such innovations as the tokenization of securities. Meanwhile, its ETF stance may also be rewritten.
“Market participants have raised questions about whether new ETFs with a primary investment strategy of investing in assets that are not securities under the Investment Company Act are investment companies,” according to the SEC’s request, which asked a number of questions on that point. It also raised questions about the time period in which ETFs become effective and what disclosures must be made during this process.
