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SEC seeks public input on novel ETF structures and strategies

SEC seeks public input on novel ETF structures and strategies

The SEC is reviewing crypto-linked, on-chain, blockchain-based and event-contract ETF designs as issuers launch more specialized products, with a 60-day comment process that TD Cowen says could eventually broaden listings by 2027.

Fact Check
The official SEC press release '2026-60' and the underlying Request for Comment (Release 33-11426, File No. S7-2026-24) directly confirm that the SEC is seeking public input on ETFs investing in novel asset classes and employing innovative strategies, with a 60-day comment period and explicit intent to potentially adjust its regulatory approach (e.g., amending rule 6c-11 and the registration process). This matches the claim's substance, including crypto-related and innovative/event-linked strategies, which fall under the SEC's framing of 'novel asset classes' and 'innovative strategies.' CoinDesk corroborates the opening of the comment period as part of an overhaul of U.S. ETF rules.
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Summary

The U.S. Securities and Exchange Commission is seeking public feedback on how novel exchange-traded fund structures and investment strategies should be regulated as issuers roll out increasingly specialized products. The 60-day comment process covers crypto-linked, on-chain, blockchain-based and event-contract products, and reflects a broader review of whether current ETF rules, registration processes, investor protections and risk-management standards remain suited to newer designs. Decisions on several prediction market ETF applications remain on hold. TD Cowen, in a view cited by The Block, said the review could eventually help open the door to prediction-market, crypto-asset and single-stock ETFs as soon as 2027, though that timing is the firm’s assessment rather than an SEC commitment.

Terms & Concepts
  • prediction market ETF: An exchange-traded fund designed to gain exposure to contracts linked to the outcome of future events.
  • on-chain: Recorded or executed directly on a blockchain network rather than through off-chain systems.
  • single-stock strategies: ETF strategies focused on exposure tied to one company’s shares rather than a broader basket or index.