In the early morning of Wednesday Beijing time, the U.S. Securities and Exchange Commission approved the physical creation and redemption of Bitcoin and Ethereum ETFs. This marks the most significant 'institutional upgrade' of the U.S. regulatory framework for crypto assets following the approval of spot ETFs, indicating that BTC and ETH have officially attained the same status as mainstream assets like gold, serving as the 'final piece of the puzzle' for global institutional compliance in crypto asset allocation.
This indicates that the SEC is shifting from defensive regulation to constructive regulation, acknowledging that BTC and ETH belong to commodity-like asset classes and should be treated in accordance with commodity-type ETPs. This is a significant boost to liquidity and profitability!
A supplementary point:
'Physical creation and redemption' aligns the operation of Bitcoin and Ethereum ETFs with the mature model of gold ETFs, reducing operational friction and symbolizing the SEC's further recognition of the commodity attributes of mainstream crypto assets.
For ordinary investors, this means lower potential tracking errors and fees;
For the overall market, it signifies a step up in depth, efficiency, and regulatory confidence. $ETH