‘Fell through the cracks’: Controversial Private Credit ETF FACES New Regulatory Hurdles

The controversial debut of SPDR SSGA Apollo IG Public & Private Credit ETF (Priv)A new exchange-traded fund from State Global Advisors that Intends to Invest at Least 80% of its Net Assets in Investment-Grade Debt Debt Securities, Is Raising Quaseing Quaseing the SECUSTIES ARANDCHENGE and Exchange Commission’s oversight of the listing.

Following a letter In which regulators outlined “Significant Remining Outstanding Issues” With the ETF, State Street Said it would complete comply with the sec’s 15% cap on Illiquid assets. However, a separe filing shows the fund is targeting 10% to 35% Exposure to Private Credit, an asset class generally thought to be non-lituid.

State street have also promised to Rename the FundSince its Illique Holdings are not exclusively tied to alternative Asset Manager ApolloAs Its Current Title May Sugges. Both the asset mix and name changes are not ons typically made after an etf’s debut.

“(State Street) mentioned that other counterparties are going to be involved with the fund of justad of just apollo,” Todd sohn, strategas’ Senior ETF and Technical Strategist, Said on CNBC “ETF edge“on Monday.

State Street Originally Submitted Its Prospectus with the sec in September, filings show. The fund began trading on the new york stock exchange Feb. 27.

“It seems like maybe the new administration came in and this fell through the cracks,” Sohn said.

While it is not unprecedented for the sec to require changes to existing funds, questions remain as to how the etf bypassed many of the issues now pladuing it. Prospective Funds have a 75-day window in which the agency provides comments and gives ETF Issuers The options to adjust before the second makes a decision on listing.

“For some strange reason, none of the questions were really addressed publicly,” Sohn pointed out.

AMID Its Turbulent Start, The Fund has $ 55 Million in Assets Under Management as of Wednsday, According to Factset.

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