The U.S. Securities and Exchange Commission has published comment responses on proposed “Novel ETFs,” a category that could include funds holding crypto assets or using unconventional strategies. The debate centers on two procedural questions: whether filing documents should remain public before a fund begins trading, and how quickly the review process should move. Grayscale and the Crypto Council for Innovation backed an optional confidential filing period, arguing it could reduce copycat submissions from competitors. Charles Schwab pushed back on full confidentiality and said filings should be disclosed at least 75 days in advance. On timing, Grayscale asked the SEC to respond within 45 days, while CCI said any confidential process should not extend automatic effectiveness or review deadlines. Andreessen Horowitz supported faster reviews without weakening scrutiny, while Jane Street warned that speeding up the process could hurt product quality, competitiveness, and liquidity. The SEC will now decide whether to change confidentiality arrangements and review speed for these filings.
The U.S. Securities and Exchange Commission has published responses to its request for comment on “Novel ETFs,” a group of funds that could hold crypto assets or use unconventional strategies.
The split in opinion focused on two issues: whether filing documents should remain public before a fund starts trading, and how fast the review process should move.
Debate over confidential filings
Crypto asset manager Grayscale and crypto policy group the Crypto Council for Innovation, or CCI, supported an optional confidential filing period to reduce the risk of copycat filings from rivals.
Charles Schwab opposed full confidentiality and said filing documents should be made public at least 75 days in advance. Grayscale asked the SEC to respond within 45 days, while CCI said a confidential process should not extend automatic effectiveness or review deadlines.
Different views on review speed
Venture capital firm Andreessen Horowitz, or A16z, supported a shorter review timeline but said scrutiny should not be weakened. Trading firm Jane Street said a faster process could reduce product quality, competitiveness, and liquidity.
Current size of the crypto-related ETF market
The U.S. market currently has 174 ETFs tied to crypto assets. BlackRock’s iShares Bitcoin Trust ETF (IBIT) holds about $61 billion in assets under management, accounting for roughly 38% of the total assets in related ETFs.
The SEC will decide whether to adjust confidentiality arrangements for filings and the speed of the review process.
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