BlackRock Inc. filed an application with the U.S. Securities & Exchange Commission on Wednesday to offer exchange-traded fund (ETF) classes for its mutual funds. This move positions BlackRock as the largest among over 30 asset managers seeking approval since Vanguard's ETF share class patent expired in May 2023. If approved, BlackRock could introduce a dual structure, allowing investors to buy either ETF shares or traditional mutual fund units, marking a potential shift in how mutual funds are structured and accessed by investors.

Currently, Vanguard is the only firm permitted to offer both types of shares within a single mutual fund. However, with Cboe Global Markets seeking a rule change to facilitate ETF share class listings, the SEC will be required to respond by late 2024. Meanwhile, Dimensional Fund Advisors, one of the earliest applicants, reported strong support from financial advisers managing approximately $3 trillion in assets, underscoring the industry’s broad interest in this potential market expansion.