The note says the regulator’s consideration of novel exchange-traded funds may eventually broaden listings to prediction-market, crypto-asset and single-stock strategies.
TD Cowen said the SEC’s review of novel exchange-traded funds could pave the way for ETFs tied to prediction markets, crypto assets and single-stock strategies as soon as 2027. The view, cited by The Block, points to a potentially broader U.S. ETF pipeline if the regulator becomes more receptive to structures that sit outside more established index-tracking products. In crypto, that could matter because SEC approval remains the key gatekeeper for bringing new exchange-traded products to public markets.