The U.S. Securities and Exchange Commission (SEC) voted in favor of approving orders that allow authorized participants to create and redeem shares of cryptoasset exchange-traded products (ETPs) in kind, according to a statement from the institution.
According to the SEC, this represents a shift from the recently approved spot bitcoin and ether ETPs, which were limited to cash creation and redemption. Now, bitcoin and ether ETPs, like other commodity-based ETPs approved by the Commission, will be able to create and redeem shares in kind.
“It is a new day at the SEC, and a key priority of my chairmanship is to develop an appropriate regulatory framework for the cryptoasset markets,” declared SEC chairman Paul S. Atkins.
“I am pleased that the Commission has approved these orders allowing in-kind creation and redemption of a range of cryptoasset ETPs. Investors will benefit from these approvals, as they will make these products less expensive and more efficient,” he added.
For the SEC, these changes “continue building a rational regulatory framework for cryptocurrencies, leading to a deeper and more dynamic market that will benefit all U.S. investors. This decision aligns with standard practices for similar ETPs.”
Jamie Selway, Director of the Division of Trading and Markets, stated: “Today’s decision by the Commission marks a significant step forward for the growing market of cryptocurrency-based ETPs. In-kind creation and redemption provide flexibility and cost savings to ETP issuers, authorized participants, and investors, resulting in a more efficient market.”
The Commission also voted to approve other orders promoting a merit-neutral approach to cryptocurrency-based products, including exchange applications seeking to list and trade an ETP containing a combination of spot bitcoin and ether, options on certain spot bitcoin ETPs, Flexible Exchange (FLEX) options on shares of certain BTC-based ETPs, and an increase in position limits up to the generic limits for options (up to 250,000 contracts) for listed options on certain BTC ETPs.
In addition, the Commission issued two scheduling orders requesting comments for or against approval by the Division of Trading and Markets, under delegated authority, of proposals by a national securities exchange to list and trade two large-cap cryptocurrency-based ETPs.
For Fórmate a Fondo