๐ข*Urgent Now: The U.S. Securities and Exchange Commission (SEC) Approves In-Kind Redemption for Bitcoin and Ethereum Funds*
Today, July 30, 2025โ๏ธโ๏ธโ๏ธ
The U.S. Securities and Exchange Commission (SEC) has approved the adoption of the in-kind funding model for the creation and redemption of shares of Bitcoin and Ethereum exchange-traded products (ETPs), instead of the traditional cash model. This decision allows authorized participants to use digital assets like Bitcoin or Ethereum to create or redeem shares of these funds directly.
*Benefits of In-Kind Funding:*
- *Reduced Operational Costs*: Lessens the financial burdens on investors.
- *Lower Tax Burdens*: Decreases taxes resulting from cash sale transactions.
- *Price Stability*: Contributes to the stability of exchange-traded fund prices in line with the true market value of the digital currency.
*Impact of the Decision on the Market:*
- *Accelerated Investment Flows*: Speeds up capital flows towards cryptocurrency exchange-traded funds.
- *Entry of New Investment Institutions*: Stimulates the entry of new investment institutions into the market.
- *Improved Trading Efficiency*: Enhances trading efficiency in secondary markets.
