The U.S. Securities and Exchange Commission (SEC) sought public comment on ETFs that invest in up-to-date asset classes or utilize up-to-date investment strategies as the agency reviews how to regulate such products.

The consultation aims to obtain feedback on whether existing rules adequately cover novel ETFs, how such funds should be regulated and whether changes are needed to the registration process as up-to-date products come to market.

According to the regulatory authority, application focuses on funds investing in novel asset classes or using up-to-date investment strategies, where it assesses whether existing regulations are still appropriate.

The public comment period will remain open for 60 days after publication in the Federal Register, giving market participants the opportunity to express their views before the SEC considers potential regulatory changes.

Exchange-traded funds have grown rapidly in recent years, with assets under management rising from about $4 trillion in 2019 to more than $12 trillion at the end of 2025, according to the SEC.

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This proposal follows recent consultations by US market regulators. Last week, the SEC and the Commodity Futures Trading Commission (CFTC) solicited public comment on harmonizing portfolio margin rules in the securities and derivatives markets.

Crypto ETF strategies are becoming more and more sophisticated

In recent months, cryptocurrency ETF issuers have increasingly moved beyond plain price tracking products, introducing funds linked to staking, stablecoin reserves and more specialized investment strategies.

In June, ProShares launched the GENIUS Money Market ETF, a treasury-focused fund targeting reserve assets permitted under the GENIUS Act for stablecoins, while Grayscale fired Hyperliquid Staking ETP, offering exposure to HYPE (HYPE) while seeking to generate staking rewards.

Bitcoin investment products are also becoming more specialized. CzarnyRock proposed in January, an options-based bitcoin income ETF, and in April, Goldman Sachs with a fund combining spot bitcoin products and covered call strategies.

Applying for BlackRock’s Bitcoin Premium Income ETF. Source: SEC.gov

Earlier this month, Franklin Templeton proposed two ETFs that would systematically reinvest stock dividends into Bitcoin-linked investments, combining U.S. stocks with a rules-based Bitcoin allocation. The proposed funds will gain exposure to Bitcoin (BTC) through instruments including exchange-traded products, futures, options and Bitcoin-backed depositary receipts.

ETF issuers are also experimenting with portfolios that combine digital assets with time-honored asset classes. In January, Bitwise launched an actively managed ETF combining Bitcoin with gold, precious metals and mining stocks.

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