SEC Approves In-Kind Creation and Redemption for Crypto ETFs
The U.S. Securities and Exchange Commission (SEC) has approved a mechanism allowing investors in Bitcoin and Ether exchange-traded products (ETPs) to exchange shares directly for underlying cryptocurrency assets, bypassing cash.
Announced Tuesday, the approval permits approved Bitcoin (BTC) and Ether (ETH) ETPs to conduct in-kind creation and redemption.
“It’s a new day at the SEC, and a key priority of my chairmanship is developing a fit-for-purpose regulatory framework for crypto asset markets,” SEC Chairman Paul Atkins stated in a statement.
Atkins noted that the new rules are expected to make crypto ETPs “less costly and more efficient.”
“In-kind creation and redemption provide flexibility and cost savings to ETP issuers, authorized participants, and investors, resulting in a more efficient market,” SEC Director of the Division of Trading and Markets, Jamie Selway, explained.
