SEC allows in-kind crypto ETF redemptions impacting bank indirect exposures – Ledger Insights
Yesterday the US Securities and Exchange Commission (SEC) voted to allow in kind creations and redemptions of crypto asset exchange traded product (ETP) shares. Since the approval of the first spot Bitcoin ETFs in January 2024, all crypto ETFs have been settled in cash. The SEC portrayed the move as providing efficiencies and cost savings for the ETF issuers. That’s because ETF issuers can receive crypto directly rather than purchasing it on the open market. A side effect is that banks will engage far more with cryptocurrencies.
“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,” said SEC Chairman Paul Atkins, adding that the…
