🔔 In a turn that marks a before and after for the crypto market, the SEC has officially authorized Bitcoin and Ethereum ETFs to create and redeem shares directly with crypto, without the need to use cash.
This technical step —known as "in-kind creation/redemption"— not only improves fund efficiency but also consolidates BTC and ETH as top-tier financial assets. 🔝
🔍 What does this change mean?
ETFs operate with a process called "creation and redemption of shares", meaning shares of the fund are created or destroyed based on demand. Until now, this process was only in cash.
🔁 How did it work before (traditional method)?
Investors delivered dollars to the ETF.
The fund bought BTC or ETH with that money.
To exit, he sold those assets and returned dollars.
❗This generated friction, commissions, selling pressure, and slowness.
💡 How does it work now with "in-kind"?
Institutional investors can deliver BTC or ETH directly to the ETF to create new shares.
And if they want to exit, they receive BTC or ETH directly, without having to sell in the market.
✅ Benefits:
Lower commissions
Less selling pressure
Less bureaucracy
Greater operational efficiency
Less impact on market price
🧠 Why is it so important?
This move elevates the status of Bitcoin and Ethereum to fully-fledged institutional assets, similar to physical gold in ETFs like the SPDR Gold Trust.
👉 It allows giant funds to expose themselves to crypto more directly, securely, and cheaply.
👉 It creates infrastructure that facilitates massive inflow without significantly altering prices.
👉 It reduces friction for major players (pension funds, banks, insurance companies...).
🏁 Conclusion: Is an influx of institutional money coming?
This improvement is not just a technical upgrade; it is an open door for the trillions that have yet to enter crypto due to operational limitations. Now, the barriers are lower, and the ground is ready for large-scale adoption.
🗣️ What do you think?
Do you think this will be the catalyst for a new bull run?
Are we witnessing the birth of a new institutional crypto era?
👇 Comment, share, and let the community know!
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