Regulators Revise ETF Review Schedules, Renewing Optimism for Digital Asset Markets

The U.S. Securities and Exchange Commission (SEC) is working on a proposal to simplify the approval process for exchange-traded funds (ETFs) by revising Rule 6c-11, which could greatly shorten the current average review timeline. With this new approach, ETF applications might be processed in as little as 75 days, a substantial reduction from the current system that often takes several months. The initiative is designed to boost market efficiency and meet the rising interest in new investment options.

This planned update holds particular importance for investment categories that have traditionally faced more regulatory obstacles, such as ETFs tied to cryptocurrencies. For example,

Authorities have stressed that the new, faster process will not undermine the thoroughness of their assessments. Rather, it will introduce a more organized review structure, outlining distinct milestones and clearer requirements for applicants. This added structure is expected to offer greater certainty for fund managers and institutional investors aiming to introduce fresh ETF offerings.

The possibility of quicker approvals has been met positively by many in the industry, who see it as a move that could foster more innovation and competition within the ETF market. Analysts point out that a swifter and more open process could encourage a wider variety of products, including funds that focus on specialized sectors and alternative assets.

Currently, the SEC has not provided a concrete timeline for when the revised rule will take effect. Nevertheless, market watchers are paying close attention to any progress, especially in light of growing enthusiasm for digital assets and the increasing trend toward investment tokenization. If a spot XRP ETF does debut successfully, it could mark a significant milestone for digital asset regulation and pave the way for similar offerings in the future.