Industry splits over speed and caution in U.S. SEC reviews of new ETFs

Local financial and crypto firms have submitted comment letters on U.S. SEC reviews of new ETFs, exposing a split between calls for faster reviews and arguments for a more cautious approach, CoinPost reported. Grayscale, the U.S. asset manager behind a Bitcoin ETF, urged the SEC to introduce a process allowing applicants to submit draft filings privately before making formal ETF applications public. Grayscale argued the procedure could help prevent rivals from copying applications and launching similar products. The firm also proposed requiring the SEC to respond within 45 days of receiving an application. 21Shares, a Swiss ETP manager, submitted a similar view to the SEC. By contrast, Jane Street, a major U.S. market maker, argued for caution against rushing ETF listings, warning that approvals without sufficient review could create problems with product design or liquidity. Charles Schwab, a major U.S. brokerage, also opposed making the entire application process nonpublic.