Suche
Mein Konto
SEC Approves In-kind Creations and Redemptions for Major Crypto ETFs: A Step to Reduce Costs in the Crypto ETF Market
SEC Approves In-Kind Creations and Redemptions for Major Crypto ETFs The U.S. Securities and Exchange Commission (SEC) recently granted approval for in-kind creations and redemptions of major crypto exchange-traded funds (ETFs). This move is expected to reduce costs in the crypto ETF space and could therefore have a positive impact on the market landscape. What does in-kind creation and redemption mean? In-kind creations and redemptions refer to the way shares of an ETF are purchased and sold. With in-kind creations, investors contribute a portfolio of assets to the fund in the form of cryptocurrencies instead of using cash. In return, they receive shares of the ETF. …
SEC Approves In-kind Creations and Redemptions for Major Crypto ETFs: A Step to Reduce Costs in the Crypto ETF Market
SEC approves in-kind creations and redemptions for major crypto ETFs
The U.S. Securities and Exchange Commission (SEC) recently granted approval for in-kind creations and redemptions of major crypto exchange-traded funds (ETFs). This move is expected to reduce costs in the crypto ETF space and could therefore have a positive impact on the market landscape.
What does in-kind creation and redemption mean?
In-kind creations and redemptions refer to the way shares of an ETF are purchased and sold. With in-kind creations, investors contribute a portfolio of assets to the fund in the form of cryptocurrencies instead of using cash. In return, they receive shares of the ETF. When it comes to redemptions, this happens the other way around: investors can redeem their shares and receive the underlying assets in the form of cryptocurrencies.
Benefits for the crypto ETF market
Approving these transactions could increase competition and increase efficiency in the crypto ETF sector. Potential benefits include:
-
Cost reduction: The in-kind transactions are expected to reduce trading costs for the funds. This could result in lowering fees for investors and making crypto investments easier to access.
-
Improved liquidity: Crypto ETFs could receive more liquidity under the new regulation, which is beneficial for investors as it offers easier trading opportunities.
- Erhöhte Transparenz: In-Kind-Kreationen und Rücknahmen können zu einer klareren Preisbildung und einer besseren Marktübersicht führen, da sie den direkten Austausch von Vermögenswerten ermöglichen.
Conclusion
The SEC's approval of in-kind creations and redemptions represents a significant step for the crypto ETF market. This regulation could not only reduce costs but also increase the overall attractiveness of crypto ETFs for investors. It remains to be seen how the market will develop in the coming period and what further steps the SEC will take in relation to the regulation of cryptocurrencies and related financial products.