Chair Atkins Releases Statement on Novel ETF Products

In May, Securities and Exchange Commission (SEC) Chair Paul Atkins released a statement addressing recent applications for exchange-traded funds (ETFs) with novel strategies, including event contract ETFs. The statement notes that the ETF marketplace has been a “major driver of innovation in the securities markets.” The statement goes on to state that ETF product offerings have tripled in assets since 2019. Chair Atkins highlights, however, that “novel products raise novel questions,” and the SEC will be considering the implications of these products. As a result, Chair Atkins has instructed that SEC staff to “seek input from the public on how the Commission should respond to recent market changes.” This review is primarily focused on event contract/prediction market ETFs, including over two dozen proposed applications from issuers.

Click here to read the SEC Chair’s full statement.