SEC Rethinks ETF Policies Amid Crypto Market Growth

The US Securities and Exchange Commission (SEC) is rethinking its approach to novel exchange-traded funds (ETFs), including those focused on crypto assets. The agency has opened a 60-day comment period, seeking input from the public on potential changes to its ETF policies.

Under the current process, ETFs that meet certain conditions can bypass a lengthy exemption request and enter the markets quickly. This approach has led to explosive growth, with ETF assets increasing from $4 trillion in 2019 to $12 trillion in 2025.

Jaret Seiberg, a policy analyst at TD Cowen, notes that the comment period is designed to build a record for future policy changes, potentially allowing ETFs focused on event contracts, crypto assets, and single-stock strategies.