ETF Innovation Accelerates as Infrastructure Plays Catch-Up

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The rule change comes amid a surge in applications for dual-class ETF structures, with major firms like BlackRock and Fidelity Investments leading the charge. However, while regulatory approvals are progressing, operational systems—such as those from the Depository Trust & Clearing Corporation—are still being developed.

This gap highlights a broader trend: financial innovation is moving faster than infrastructure. As hybrid ETF models gain traction, the success of these products will depend not only on regulatory support but also on the readiness of market systems to handle new trading and settlement processes.

[johnblockbuster]

finance inventing new products before the system can even handle them

[johnblockbuster]

new etf structures dropping while the plumbing is still being built