Altcoins News
By Pankaj K
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Understanding In-Kind Mechanisms. In traditional finance, in-kind mechanisms are commonly used for ETFs.
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Why This Change Matters. Prior to this approval, crypto ETFs in the U.S. used cash-based mechanisms, requiring APs to…
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Boost for Institutional Adoption. Institutional investors—such as hedge funds, asset managers, and pension funds—stand to benefit…
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Regulatory Confidence and Market Maturity. The SEC’s approval of in-kind mechanisms also signals a major shift in its stance toward digital…
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SEC Chair’s Vision for a Crypto Framework. SEC Chair Paul Atkins has emphasized a “fit-for-purpose” regulatory framework for digital assets.
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What It Means for Crypto Investors. For retail investors, the change may not have an immediate visible effect, but it improves the…
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Conclusion. The SEC’s approval of in-kind creation and redemption for Bitcoin and Ethereum ETFs is a notable…
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The U.S. Securities and Exchange Commission (SEC) has taken a significant step in advancing the role of digital assets in traditional finance.
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This shift is more than a technical adjustment—it reflects growing regulatory confidence in the crypto market and marks a meaningful change in how crypto ETFs function,…
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In traditional finance, in-kind mechanisms are commonly used for ETFs. Instead of using cash to buy or redeem shares, authorized participants (APs) deliver or receive the…
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Now, with the SEC’s approval, Bitcoin and Ethereum ETFs can adopt the same structure. APs can transact ETF shares directly in BTC or ETH, bypassing the need for converting to or…
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Prior to this approval, crypto ETFs in the U.S. used cash-based mechanisms, requiring APs to purchase or sell crypto in the open market to settle transactions.
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By allowing in-kind transfers of BTC and ETH, ETF issuers and APs gain better control over supply and demand.
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Lower costs: Reduced need for market transactions limits trading fees.
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Better liquidity: Real-time share creation improves response to market demand.
The Currency Analytics
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