Breaking! SEC Approves Creation and Redemption of All BTC and ETH Spot ETFs
According to Bloomberg ETF analyst Eric Balchunas' latest post on X, the SEC has just approved the creation/redemption of all spot Bitcoin and Ethereum ETFs.
The approval of these ETFs may attract more institutional investors into the cryptocurrency market, thereby increasing market liquidity and stability.
Balchunas noted that although phrases like 'accelerated approval' were used in the order, it does not mean that the SEC is fully prepared to accept more cryptocurrency-related products.
However, he also pointed out that this approval is primarily aimed at market makers, not retail investors. Currently, individual investors cannot directly convert IBIT into Bitcoin. Furthermore, the impact of this change on the retail market is relatively limited, mainly optimizing and improving existing trading processes.
Balchunas also mentioned that SEC Chairman Gensler does not want to conduct trades in physical form, possibly because he wants to avoid Bitcoin being exploited by bad actors. Interestingly, other ETF products in the market generally adopt a physical trading method.
Balchunas believes this indicates that the SEC is actually prepared to regard cryptocurrency as a legitimate asset class. In Balchunas' view, this is undoubtedly an important signal that the cryptocurrency market is gradually gaining recognition from the mainstream financial system.
Overall, this approval is a significant milestone for the cryptocurrency market, but market participants still need to closely monitor the SEC's subsequent actions and changes in the regulatory environment.
