SEC Approves ETF Share Class Structure, Paving Way for Broader Adoption

The U.S. Securities and Exchange Commission has greenlit Dimensional Fund Advisors to launch an exchange-traded fund (ETF) share class for an existing mutual fund. This landmark decision signals the regulator's readiness to extend similar approvals to other asset managers imminently.

Europe has long permitted such hybrid structures, but U.S. fund managers previously faced regulatory barriers. State Street's 2025 Global ETF Megatrends Review reveals 70 U.S. firms have pending applications for actively managed ETF share classes - a capital-efficient approach to investor acquisition through unified asset pools.

"We anticipate significant product proliferation following this ruling," remarked Frank Koudelka, State Street's global head of ETF solutions. The move eliminates redundant portfolio management for separate mutual funds and ETFs, potentially accelerating institutional crypto adoption through traditional investment vehicles.