SEC Approves In-Kind Redemptions For All Bitcoin And Ethereum ETFs, Marking Major Regulatory Shift
Main Idea
The SEC has approved in-kind redemptions for Bitcoin and Ethereum ETFs, allowing authorized participants to exchange shares for underlying crypto tokens, marking a shift toward more pro-crypto policies.
Key Points
1. The SEC announced approval for in-kind redemptions for Bitcoin (BTC) and Ethereum (ETH) ETFs, aligning them more closely with traditional ETFs.
2. Previously, spot BTC and ETH ETFs did not allow investors to directly exchange shares for underlying crypto tokens; now, authorized participants can deliver or receive Bitcoin and Ether via a market maker.
3. SEC Chairman Paul Atkins stated that developing a fit-for-purpose regulatory framework for crypto is a key priority, aiming to make these products less costly and more efficient.
4. Bloomberg ETF analyst Eric Balchunas noted the SEC’s accelerated approval signals a broader trend toward more ETF approvals in the crypto market.
5. The shift reflects a wider industry trend toward pro-crypto policies, potentially fostering growth in the nascent crypto ETF sector.
Description
While the Wall Street regulator never explicitly banned in-kind redemptions, ETF sponsors were instructed to remove them from early filings.
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