ETF Approvals Accelerate Under New SEC Rule Changes
The U.S. Securities and platform Commission (SEC) has introduced significant rule changes aimed at streamlining the approval process for platform-traded funds (ETFs), especially those linked to commodities and digital assets. The reforms, announced in September 2025, are expected to dramatically reduce the time it takes to bring new ETFs to market, with timelines shrinking from nahead nine months to as little as 75 days. The shift could trigger a flood of new ETF launches, transforming the competitive landscape of the U.S. financial markets.
Streamlined standards for ETFs
At the heart of the changes are new generic listing standards that platforms such as the NYSE, Nasdaq, and Cboe can now apply to commodity- and crypto-based platform-traded products (ETPs). In practice, this means that ETFs meeting certain pre-approved criteria can avoid the lengthy 19b-4 rule change filings, which previously required detailed SEC review for every individual product. Instead, issuers will primarily need to file S-1 registration documents, a process that is considered more straightforward and efficient.
The elimination of mandatory 19b-4 filings is already reshaping the regulatory process. Issuers have been encouraged to withdraw pending 19b-4 applications, as these are no longer necessary under the updated framework. Market participants note that what once took up to 270 days could now be completed in a fraction of the time, with some describing the pace as “absurdly quick” compared to historical norms.
Implications for issuers and markets
Several high-profile cases underscore the immediate impact of the SEC’s decision. Hashdex recently secured approval for a multi-asset crypto ETF under the new rules, expanding investor access to tokens such as XRP and Solana. Meanwhile, Dimensional Fund Advisors (DFA) is preparing to launch ETF share classes within its existing mutual funds, a move that could encourage dozens of similar applications. Analysts estimate that as many as 80 additional issuers may soon file under the streamlined framework.
The SEC has also emphasized its prioritization of dual share-class applications, where mutual funds can offer ETF share classes. This is viewed as a major growth area for the industry, providing investors with more flexibility while allowing asset managers to leverage existing fund structures.
Despite the optimism, caution remains. Some SEC commissioners have warned that accelerating approvals could expose investors to new risks, particularly in the volatile digital asset space. The streamlined standards apply only to ETFs that meet strict criteria, including requirements for liquidity, market surveillance, and underlying asset reliability. Products that fall outside these parameters will still be subject to traditional, lengthier review processes.
Industry experts say the changes will encourage greater innovation and competition across asset classes, potentially lowering costs for investors and broadening access to new markets. However, challenges such as custody arrangements, tax considerations, and operational risks will continue to pose obstacles for issuers even later than regulatory approval.
With the SEC’s reforms in place, the ETF market is poised for rapid expansion. quicker approvals, combined with strong demand for diversified and digital asset exposure, could position the U.S. as a leader in next-generation financial products, reinforcing the role of ETFs as one of the most dynamic investment vehicles in global markets.
