Securities Commission endorses redemption of Bitcoin and Ethereum ETFs in non-monetary form
The world of cryptocurrency and Exchange-Traded Funds (ETFs) continues to evolve, with several significant developments taking place over the past few weeks. Here's a rundown of the latest updates:
In a move that could pave the way for more altcoins, analysts now anticipate similar in-kind treatment for upcoming ETF applications involving digital currencies like Solana and XRP. This follows the U.S. Securities and Exchange Commission (SEC) approving in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs.
The in-kind process, which allows institutional investors to exchange ETF shares directly for BTC or ETH, eliminating the prior cash-only restriction, has been granted to exchanges like Nasdaq, NYSE Arca, and Cboe BZX. Notable issuers approved under the accelerated process include BlackRock, Ark21, and Fidelity.
In July, spot Bitcoin and Ethereum ETFs recorded a combined $11.2 billion in inflows, with Ethereum products seeing $1.6 billion. This surge in investment could indicate a growing confidence in these digital assets.
On the regulatory front, the SEC has also approved an increase in position limits for ETF options contracts, allowing traders to hold more contracts tied to ETFs like BlackRock's IBIT.
Meanwhile, Australia's $4.3 trillion retirement system has embraced cryptocurrency, while Hong Kong has officially positioned stablecoins as legal tender tools.
In other news, Japan Post Bank has announced plans to launch a digital currency in 2026, but official confirmation is still pending. The Bank of China Hong Kong is seeking a stablecoin issuer license.
Steven McClurg discussed XRP's position in Wall Street, and Ripple unveiled a "Ripple Payments" demo featuring XRP liquidity. Wormhole countered LayerZero's $110M Stargate bid.
Arthur Hayes projected a $10 trillion stablecoin surge by 2028, and Web3 startups have raised a record $9.6 billion in venture capital funding. The Federal Reserve highlighted stablecoins amid the passage of the GENIUS Act.
Lastly, there have been 92 cryptocurrency ETF filings in the U.S., awaiting the SEC's decision. The institution approved to perform in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs on July 29, 2022, remains unnamed in the provided results.
This roundup serves as a snapshot of the dynamic and ever-changing landscape of cryptocurrency and ETFs. As these sectors continue to grow, it's essential to keep a close eye on the latest developments and their potential impacts.
