The U.S. Securities and Exchange Commission (SEC) has officially approved in-kind creation and redemption for crypto ETFs—meaning funds can exchange Bitcoin or Ether directly instead of cash. This mirrors traditional commodity ETF structures and is expected to dramatically improve structural efficiency and appeal for institutional investors.
Market analysts predict that this move will make crypto ETFs more cost-effective, lower slippage in large trades, and bring greater alignment with legacy financial instruments. As more asset managers seek faster approval timelines and standardized listing formats, this shift could accelerate adoption, especially among institutional players.
Key Takeaways:
SEC now permits direct Bitcoin/Ether exchanges in ETF transactionsMoves cryptocurrencies closer to mainstream commodity investment structuresLikely to attract institutional demand and improve liquidity managementPart of broader U.S. crypto-friendly regulatory framework rollout
Would you invest in a crypto ETF that lets you redeem tokens like Bitcoin instead of cash? Why or why not?
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