The SEC's nod to in-kind creations for Bitcoin ETPs could revolutionize market efficiency and institutional adoption. Here's the lowdown on this regulatory shift.
SEC Greenlights In-Kind Creations: A Game Changer for Bitcoin ETPs?
The SEC's recent approval of in-kind creations and redemptions for Bitcoin and Ethereum ETPs marks a pivotal moment. This shift promises to streamline market efficiency and boost institutional interest. Let's dive into what this means for the future of crypto investment, New York style.
What's the Big Deal with In-Kind Creations?
For those not fluent in Wall Street jargon, in-kind creation allows authorized participants to exchange actual Bitcoin or Ether for ETP shares, rather than cash. Think of it as swapping your sneakers directly for a new phone, instead of selling the sneakers, getting cash, and then buying the phone. This cuts out a step, reducing costs and potential arbitrage risks for market makers. Bloomberg Intelligence ETF analyst James Seyffart calls it a
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