Bitcoin Magazine Bitcoin Price Reclaims $118,000 As SEC Approves In-Kind Creations and Redemptions for Crypto ETPs
The SEC announced Tuesday that it has approved orders permitting in-kind creations and redemptions for crypto asset exchange-traded products (ETPs), a move that could dramatically improve the efficiency of Bitcoin and crypto ETFs while potentially reducing costs for investors.
The decision represents a departure from the cash-only creation and redemption mechanism required for the initial wave of spot Bitcoin ETFs approved in January last year. Under the new framework, authorized participants will be able to exchange ETF shares directly for the underlying crypto assets, similar to how traditional commodity ETFs operate.
The bitcoin price responded positively to the news, cl