The SEC dropped a 60-day comment window on June 30 asking the public, and more pointedly the fund industry, how it should think about a new generation of exchange-traded funds that don’t fit neatly into existing regulatory boxes. The request, filed as Release No. 33-11426, covers ETFs tied to crypto assets, event contracts, leveraged strategies, and private investments. Comments are due by August 31.
US ETF assets have ballooned from $4 trillion in 2019 to $15.7 trillion by the end of May 2026, a nearly fourfold increase in about seven years.
What the SEC actually wants to know
At the core of the request is a deceptively simple question: can these novel funds operate under Rule 6c-11, the 2019 regulation that streamlined how most ETFs come to market? The SEC is also probing whether the Investment Company Act of 1940 even applies to some of these new structures. Beyond classification, the SEC flagged potential changes to the registration process itself, as novel ETF sponsors have been navigating a patchwork of exemptive relief applications and informal guidance.
One telling detail: the SEC noted that fund sponsors had voluntarily delayed launching certain novel ETFs as of May 20, 2026.
Industry heavyweights weigh in
Among the key commenters are Grayscale Investments, 21Shares, and the Crypto Council for Innovation. Grayscale, which fought a high-profile legal battle to convert its Bitcoin Trust into a spot ETF, has been consistently pushing for regulatory frameworks that treat digital assets comparably to traditional ones. 21Shares, a major crypto ETP issuer with roots in Europe, brings an international perspective, as European markets have hosted crypto exchange-traded products for years. The Crypto Council for Innovation has raised concerns that vague definitions in any new framework could inadvertently chill product development.
The crypto dimension
Spot Bitcoin ETFs launched in early 2024 and attracted massive inflows. Spot Ethereum ETFs followed. Each subsequent structure raises distinct regulatory questions: a staking-enabled ETF generates yield in a way that could implicate securities law differently than a fund that simply holds coins in cold storage, while a leveraged crypto ETF amplifies both returns and risks.
What this means for markets
The August 31 deadline means any proposed rulemaking probably wouldn’t arrive until late 2026 at the earliest.