Dimensional Secures Approval as Second Company for SEC ETF-Mutual Fund Hybrid

The Securities and Exchange Commission has authorized Dimensional Fund Advisors to provide exchange-traded fund share classes in addition to conventional mutual fund shares, making it the second asset manager, following Vanguard, to obtain this capability.

The order issued on November 17 grants Dimensional exemptions that allow open-end management investment companies to manage both ETF classes and mutual fund classes within the same fund framework, establishing the firm as the first to implement this model for actively managed products.

Dimensional submitted its initial application in July 2023 and made three amendments before achieving final approval.

The SEC’s order exempts the firm from various provisions of the Investment Company Act of 1940, including sections related to share pricing, redemptions, and certain affiliated transactions.

SEC issues approval order allowing Dimensional to offer ETF share classes of mutual funds…
Becomes second asset manager after Vanguard w/ this capability & the first w/ ability to use for actively managed products.
Some *90* other asset managers pursuing this as well. pic.twitter.com/AILGy0Y9K3

— Nate Geraci (@NateGeraci) November 17, 2025

Ninety Firms Await Similar Approvals

<papproximately ninety additional asset managers have submitted applications seeking the same capabilities, as reported by several etf analysts.

This approval indicates potential momentum for a wider adoption of hybrid fund structures throughout the industry.

Nate Geraci, co-founder of ETF Store, pointed out that Dimensional possesses a competitive advantage as the first firm permitted to apply this model to actively managed strategies.

While Vanguard was the pioneer of this structure, its primary emphasis remains on passive index funds.

Dimensional’s approval expands the framework into active management, where fund companies generally earn higher fees and maintain greater differentiation from their competitors.

BIG news for DFA. Congratulations to them for being first. Have to assume floodgates are going to open for those ~90 other firms vying for similar approvals. https://t.co/pCPA8KfACU

— James Seyffart (@JSeyff) November 18, 2025

James Seyffart, senior ETF analyst at Bloomberg Intelligence, anticipated a forthcoming increase in approvals for firms awaiting similar authorizations.

The hybrid model enables asset managers to offer lower-cost ETF shares alongside traditional mutual fund shares, which could attract investors looking for tax efficiency and intraday trading without necessitating existing mutual fund shareholders to convert.

Solana ETF Competition Intensifies

VanEck introduced the third U.S. Solana staking ETF on Monday, entering a market where Bitwise and Grayscale have collectively amassed over $380 million since late October.

The VanEck Solana ETF, trading under the ticker VSOL, has suspended its 0.3 percent management fee until February 17, or until assets reach $1 billion.

Fidelity is set to launch its Solana ETF, ticker FSOL, on November 19 with a fee of 25 basis points.

Canary Funds will also introduce its Solana ETF, ticker SOLC, on the same day, in collaboration with Marinade Finance for on-chain staking.

Balchunas highlighted Fidelity’s scale advantage as the largest asset manager in this category, noting BlackRock’s absence from the Solana market despite its dominance in Bitcoin ETFs.

Fidelity Solana ETF $FSOL is slated to launch TOMORROW. Fee is 25bps. Easily the biggest asset manager in this category with BlackRock sitting out. $BSOL got out first, has $450m, $VSOL launched today, Grayscale is in mix. Game on. pic.twitter.com/iCXMkAH9qe

— Eric Balchunas (@EricBalchunas) November 17, 2025

Bitwise’s Solana ETF, ticker BSOL, currently leads with around $450 million in assets under management. Grayscale has also joined the Solana ETF lineup alongside the new entrants.

Regulatory Shift Signals Broader Industry Integration

The hybrid model addresses long-standing friction between mutual fund investors seeking tax efficiency and ETF investors requiring traditional share class options.

The approval builds on the SEC’s September initiative to streamline processes that eliminated case-by-case reviews for crypto ETF applications, significantly speeding up product launches in the digital asset sector.

Today, the SEC also removed crypto from its examination priorities for 2026, indicating that digital assets are no longer viewed as a special risk area necessitating increased supervisory attention.

BREAKING:
THE SEC HAS REMOVED CRYPTO FROM ITS 2026 PRIORITIES.
SIGNALING IT’S NO LONGER CONSIDERED A SPECIAL RISK AREA. pic.twitter.com/LUP4suYJ7j

— Crypto Rover (@cryptorover) November 18, 2025

Industry analysts interpret this removal as a subtle acknowledgment that crypto markets have matured sufficiently to deserve treatment similar to other established asset classes under the agency’s standard regulatory framework.

Digital asset investment products have recently experienced a decline amid the overall market downturn that saw Bitcoin drop below $90K today from its October peak of $126K.

Last week, these investment products faced $2 billion in outflows, marking the largest weekly withdrawals since February.

The three-week period resulted in total outflows of $3.2 billion amid significant price drops across major cryptocurrencies.

Total assets under management in digital asset ETPs fell 27 percent from their early-October high of $264 billion to $191 billion.

U.S.-based products accounted for $1.97 billion of last week’s outflows, while other products also recorded significant withdrawals.

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