đď¸ SEC Regulatory Shifts â In-Kind Mechanism Approved.
- The U.S. SEC now allows inâkind creations and redemptions for spot Bitcoin and Ethereum ETFs, replacing the previous cash-only mechanism.
- This aligns crypto ETFs with traditional commodity ETF mechanics, improving market efficiency, liquidity, tighter spreads, and potentially lowering costs for investors.
- Cboe BZX and NYSE Arca have filed rule change proposals to fastâtrack listings of new crypto ETFs using standardized criteria, potentially bypassing individual SEC approvals.
đ¸ Ethereum Spot ETF Inflows Surge
- Spot Ethereum ETFs saw a record-breaking $5.41âŻbillion net inflow in July alone, exceeding the prior cumulative total since launch.
- Assets under management are estimated at ~$9.62âŻbillion, with BlackRock iShares ETH ETF dominating inflows.
- Some issuers are seeking SEC approval to enable staking of ETH held within ETFsâa change that could transform ETH into a yield-bearing asset for fund holders.