SEC Building More Orderly ETF Approval Process to Handle 200 Monthly Applications

According to SEC official Brian Daly, the agency is working toward a more orderly and asset-neutral process for approving exchange-traded funds following its June 30 public comment request on novel ETFs. Daly, director of the SEC's Division of Investment Management, said the regulator is assessing how to manage a rapidly expanding ETF pipeline while preserving investor protection. The SEC currently faces approximately 200 ETF applications per month, including increasingly complex products tied to crypto assets, leverage and options strategies.

The push for reform is partly shaped by the SEC's handling of crypto ETFs, including years of delays before approving spot Bitcoin ETFs. The agency is also considering whether to introduce confidential filings that could allow issuers to protect product ideas during development before public disclosure, addressing industry concerns about competitors copying strategies immediately after public filings appear.