The SEC is exploring a more structured ETF approval pipeline and may allow some issuers to file applications confidentially, according to comments from a senior official, as cited by Bloomberg ETF analyst Eric Balchunas. Brian Daly, an official in the SEC’s Division of Investment Management, said the agency now receives around 200 ETF filings per month, which increasingly include crypto‑linked and prediction market products. He explained that staff is studying ways to make the process more robust and orderly as that volume grows.
SEC Weighs Confidential ETF Applications
Speaking at a recent industry event, Daly said the SEC is looking at whether to let certain ETF applications be submitted on a non‑public basis “to protect innovation and prevent copycat filings,” according to Balchunas’ summary on X.
In practice, confidential treatment could give issuers room to develop new structures or underlying asset exposures without triggering a rush of near‑identical products from competitors. It would also align ETF filings more closely with how some corporate registration statements already work, in which drafts remain private until regulators finish early rounds of comment.
Daly’s remarks come as the SEC continues to adjust its approach to crypto and other novel ETFs, including commodity‑based trusts that hold digital assets. Bloomberg and other outlets have reported that new generic listing standards for certain spot crypto ETFs have already reduced the role of 19b‑4 exchange rule filings, making the S‑1 registration process the main hurdle. The confidential filing idea would add another lever the SEC can use to balance innovation with market stability and investor protection.
Handling 200 ETF Filings a Month
Daly highlighted that the SEC now reviews roughly 200 ETF‑related applications each month, a figure that covers everything from traditional equity and bond funds to products tied to prediction markets and digital assets. That workload reflects the surge in interest after spot Bitcoin ETFs gained approval, followed by ether and other crypto‑linked proposals.
Analysts like Balchunas have called ETFs “crypto’s bridge to institutions,” and Daly’s comments show the regulator is trying to build clearer guardrails around that bridge as it gets busier.
So a more orderly process is not just about speed but also sequencing and fairness, so staff may evaluate similar items and prevent inconsistent conclusions. Daly said any adjustments would still have to comply with existing securities law and ETF rules, but said the division is actively considering solutions.
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