According to sources from BlockBeats, the U.S. Securities and Exchange Commission (SEC) has officially recognized the in-kind creation/redemption of the spot Ethereum ETF proposed by BlackRock – a giant in the asset management industry. This is an extremely important signal, not only indicating that the ETF approval process is entering a new phase but also reflecting the SEC's more open attitude toward financial products related to digital assets.
Specifically, the recognition of the physical creation/redemption mechanism allows institutions participating in the ETF to directly swap underlying assets (Ethereum) for fund shares and vice versa, instead of having to do so in cash. This mechanism is highly valued by the investor community for providing greater transparency, efficiency, and stability in ETF operations. This was a feature that the SEC previously requested to be amended when reviewing spot Bitcoin ETF filings.
BlackRock's achievement – one of the largest asset managers in the world – also instills confidence in the possibility that the spot Ethereum ETF will soon receive official approval. This could create a ripple effect across the crypto market, from investor sentiment to institutional capital inflows.
💬 What do you think about this new development from the SEC and BlackRock?
Is this a 'stepping stone' for the next big explosion in the Ethereum market?
Please leave a comment below and share your perspective!
