Bitcoin ETF Investors Will Now Be Able to Redeem Shares for BTC
The Securities and Exchange Commission has approved in-kind creations and redemptions for crypto-based exchange-traded funds, according to a blog post published on Tuesday.
Previously, spot Bitcoin and Ethereum ETFs approved by the regulator were limited to creations and redemption on an in-cash basis, preventing investors from exchanging shares of an ETF for its underlying tokens or vice versa. Now, if a Bitcoin ETF investor wants to swap their shares for the BTC backing them, they’ll be able to do so.
In a statement, SEC Chair Paul Atkins said the approvals will ultimately benefit markets and investors with products that cost less and are more efficient.
“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,” he said. “Today’s approvals continue to build a rational regulatory framework for crypto, leading to a deeper and more dynamic market.”
Editor's note: This story is breaking and will be updated with additional details.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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