What exactly is a novel ETF, and can the US Sec define it?
Asset managers, exchanges, brokerage firms, and clearing houses spent the closing days of a 60-day comment window warning the US Securities and Exchange Commission (SEC) against grouping crypto, leveraged, private-asset, and prediction-market products under a single “novel exchange-traded fund” label.
According to a Reuters review of the letters, the sweeping nature of the regulator’s questions and the lack of a precise definition of “novel” may make it difficult for regulators trying to chart a path forward.
Angela Brickl, chief operating officer and general counsel of Rafferty Asset Management, wrote in her firm’s submission that “‘Novel ETFs’ cannot be effectively defined,” Reuters reported.
