SEC Reviews Comments on Novel ETFs as Firms Debate Confidential Filings and Faster Approvals

The U.S. Securities and Exchange Commission has published public responses to its request for comments on Novel ETFs, which may hold crypto assets or use unconventional strategies. According to Odaily, the debate centers on whether filing documents should remain confidential before a fund begins trading and how quickly the review process should move. Grayscale and the Crypto Council for Innovation support an optional confidential filing period to reduce copycat submissions from competitors. Charles Schwab opposes full confidentiality and says filing documents should be made public at least 75 days in advance. Grayscale asked the SEC to respond within 45 days, while the Crypto Council for Innovation said the confidential process should not extend automatic effectiveness or review deadlines. Andreessen Horowitz supports a shorter review period but said scrutiny should not be weakened, while Jane Street said a faster process could hurt product quality, competitiveness, and liquidity. The U.S. currently has 174 crypto-related ETFs. BlackRock's iShares Bitcoin Trust ETF (IBIT) manages about $61 billion in assets, or roughly 38% of total assets across related ETFs. The SEC will decide whether to adjust confidential filing arrangements and review speed.