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SEC Scraps Cash Rule and Opens the Door for Crypto ETFs
The US Securities and Exchange Commission (SEC) has recently made a groundbreaking decision. They have removed the requirement for cryptocurrency-based exchange-traded funds (ETFs) to be cashed out, which is a major shift in the crypto market.
Prior to this change, when an investor wanted to sell their shares of a crypto ETF, they had to first convert them into cash. This process was slow and expensive. The new rule will allow for “in-kind” transactions, where investors can transfer the cryptocurrency itself, cutting costs and improving liquidity.
The SEC has stated that this change is designed to align with traditional commodity-based funds, allowing for faster, cheaper, and more direct interactions between investors and ETFs. This move could have a significant impact on the growth of the crypto ETF market as a whole.
In a statement, Paul Atkins, the SEC chair, emphasized the importance of bringing crypto ETFs in line with other commodity-based funds. MartyParty, a renowned crypto analyst, has also commented on this development, stating that it is “the final holdup” for the ETF market and we will likely see a significant increase in crypto ETF movement going forward.
The potential implications of this change are substantial. It would allow institutional investors to easily gain exposure to cryptocurrency markets with greater efficiency and lower costs. This could potentially lead to an influx of new investors entering the space, increasing the overall liquidity and stability of the market.
It is worth noting that alongside this decision, the SEC also approved several pending crypto-related orders, including plans for Bitcoin ETFs and mixed Bitcoin-Ether products.
Source: blockonomi.com
