Regulatory Challenges for Private Credit ETFs

The launch of the Spider-SSGA Apollo Public and Private Credit ETF has raised significant regulatory concerns, highlighting key liquidity and compliance issues flagged by the SEC. Despite receiving initial approval, the SEC later questioned the fund's naming and its adherence to valuation rules, reflecting the complexities involved in offering private credit assets to retail investors. Responding to these concerns, State Street clarified that the fund’s assets would not be limited solely to those associated with Apollo and assured daily NAV calculations for transparency. This scenario underscores the importance of thorough due diligence and transparent communication regarding fund operations to instill investor confidence.