
The US Securities and Exchange Commission (SEC) has announced a groundbreaking decision to remove its cash conversion rule, paving the way for crypto exchange-traded funds (ETFs). This significant move will significantly lower costs and improve liquidity in the market.
Under the new regulations, crypto ETFs will now be allowed to process in-kind transactions. In essence, this means that market makers can deposit or redeem actual cryptocurrencies like Bitcoin or Ether directly with the fund, eliminating the need for cash conversions.
Source: blockonomi.com