SEC Delays Novel ETF Funds

The U.S. Securities and Exchange Commission (SEC) is postponing the introduction of several innovative exchange-traded funds (ETFs) designed to allow investors to speculate on future events, such as election outcomes and economic data releases. This delay stems from the agency's ongoing evaluation of the appropriate scope and limitations for the $15 trillion ETF market. The SEC is carefully considering how far the established ETF structure can be extended to accommodate these new, prediction-market-based investment vehicles, indicating a cautious approach to expanding the ETF wrapper's functionalities.