SEC Ponders Speeding Up Cryptocurrency ETF Review Process

The US Securities and Exchange Commission (SEC) has opened up its comments on 'Novel ETFs', which can hold cryptocurrencies or use unconventional strategies. The debate centers around whether fund reports should be public before trading begins, as well as the speed of the review process.

Grayscale, a cryptocurrency management company, and the Crypto Council for Innovation support an optional confidential reporting period to reduce competitive submissions of similar files. Charles Schwab opposes full confidentiality and recommends making fund reports public at least 75 days in advance.

Andreessen Horowitz (A16z), a venture capital firm, backs speeding up the review process but warns against lowering scrutiny. Jane Street, a trading company, believes accelerating the flow may lead to decreased product quality, competitiveness, and liquidity.

The SEC will decide on adjusting the reporting arrangements and review speed for ETFs related to cryptocurrencies. Currently, there are 174 such funds in the US, with BlackRock's iShares Bitcoin Trust ETF managing approximately $61 billion dollars, accounting for about 38% of total related assets.