Overview
- The SEC published a formal 60-day request for comment on June 30 asking whether existing ETF rules cover products that hold non-traditional assets or use novel strategies.
- The agency has held in abeyance roughly two dozen prediction‑market ETF filings from Roundhill, GraniteShares and Bitwise while it gathers public input on those products’ mechanics and disclosures.
- The comment request probes whether funds that mainly hold non‑security assets qualify as investment companies under the Investment Company Act and whether Rule 6c-11 and the 60–75 day automatic effectiveness timeline remain appropriate.
- Officials asked targeted questions about investor protections, naming specific concerns such as binary payoff risk that can wipe out holdings, thin underlying liquidity, arbitrage and market‑making mechanics, and competitive first‑mover filing pressures.
- Regulators signaled the review is building a rulemaking record that could create clearer approval paths for some novel crypto and event‑contract ETFs in the future and that coordination with the CFTC will matter for contracts the CFTC already oversees.