Directly relevant to $GME. The mechanisms of ETFs (particularly XRT) are used for naked short selling, and the public has no visibility into it at all. Thanks SEC!
From: https://www.ft.com/content/a9d04b8a-feea-4e4a-8bb8-d7681b8bcc52
In overturning the proposal it does lead us to wonder whose interests the SEC really ended up representing?
And so we find ourselves in a situation where the SEC’s new rule will allow APs and ETF managers to mess around with deliverable/redeemable basket compositions like never before. And yet, the chances of analysts or media spotting any potential correlation, tracking or liquidity mismatch issues that arise from this freedom to deviate are less than slim, because none of that data is any easier to obtain by the public.