SEC Overwhelmed by ETF Filings, Seeks Streamlined Review Process

The US Securities and Exchange Commission (SEC) is looking to streamline its ETF approval process due to an influx of new filings. According to Bloomberg's Eric Balchunas, SEC Investment Management Division official Brian Daly stated that the agency receives approximately 200 ETF applications each month.

Daly also expressed a desire for a more orderly process to rebuild trust after being criticized for handling crypto and novel products.

The SEC is considering confidential filings, which would allow issuers to file products privately before their applications become public. This could potentially protect early ideas from copycats.

Prediction market ETFs remain under review as the agency seeks feedback on novel fund structures. Daly stated that ETF assets grew from $4 trillion in 2019 to over $12 trillion at the end of 2025, highlighting the need for a more efficient regulatory framework.