SEC Opens Review of Novel ETFs as $16 Trillion Boom Disrupts Market Structure
- The SEC has launched a public comment process on regulating novel exchange-traded funds, including prediction-market and other innovative products, as U.S. ETF assets top roughly $16 trillion (Bloomberg).
- ETF assets have roughly doubled since 2019, hitting about $12T by end-2025, prompting regulators to revisit rules covering liquidity, leverage, and disclosure.
- The move could reshape trading and market structure as active, leveraged, and alt-asset ETFs proliferate on Wall Street.