On May 15, 2024, the U.S. Securities and Exchange Commission (#SEC ) postponed its decision regarding applications #WisdomTree and #VanEck for ETFs #Bitcoin and #Ethereum based on in-kind (creation and redemption in the form of physical crypto assets). This filing has been postponed until

June 3, 2024, to give regulators more time to evaluate the proposals.

Details of the Postponement:

1. WisdomTree

- Filed for in-kind Bitcoin ETF (BTCW) and in-kind Ethereum ETF (ETHW).

- The SEC has requested public comments on whether these products should be approved.

2. VanEck

- Also filed for in-kind Ethereum ETF (ETHV).

- The SEC stated it needs additional time to consider the potential risks and benefits.

What Does It Mean?

- In-kind creation/redemption means that market makers can exchange Bitcoin/Ethereum directly for ETF shares, unlike the cash-create model currently used by spot Bitcoin ETFs like BlackRock (IBIT) and Grayscale (GBTC).

- The SEC remains cautious in approving the in-kind model due to concerns about oversight and potential market manipulation.

- The final decision could be a rejection, approval, or further postponement.

What’s Next?

- May 31: Deadline for cash-create spot Ethereum ETFs (such as from BlackRock and Fidelity).

- June 3: New deadline for the SEC decision on WisdomTree & VanEck in-kind ETFs.