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The U.S. Securities and Exchange Commission has approved the creation and redemption of cryptocurrency products traded on cryptocurrency exchanges. This change allows the Bitcoin and Ethereum ETFs ( to settle redemptions in cryptocurrencies instead of cash. This step aims to enhance flexibility and reduce costs in the market for digital asset ETFs.
Urgent: 🇺🇸 The U.S. Securities and Exchange Commission approves the creation and redemption of all spot Bitcoin ETFs 2025
New rules enhance the efficiency of cryptocurrency ETF issuers.
The U.S. Securities and Exchange Commission ) announced this change on Tuesday, allowing in-kind redemptions for previously approved spot Bitcoin and Ethereum ETFs. This mechanism enables accredited participants to exchange shares for the underlying digital assets, eliminating the need to sell the assets for cash during the process.
Industry leaders argue that this reduces transaction costs and adds flexibility. In-kind redemptions also reduce taxable events compared to cash redemptions. The U.S. Securities and Exchange Commission (SEC) believes that this change will support the ETF market structure more efficiently.