Leading financial institutions in the US have submitted new proposals to the SEC to enable direct crypto asset withdrawals (in-kind payments) from Bitcoin and Ethereum ETFs.
Companies including Fidelity, VanEck, and WisdomTree submitted their updated filings to the US Securities and Exchange Commission (SEC) yesterday, aiming to allow authorized participants direct crypto asset redemptions from spot Bitcoin and Ethereum ETFs. Bloomberg ETF analyst James Seyffart indicated this move signifies positive dialogue and regulatory progress with the SEC.
The new adjustments are expected to make Bitcoin and Ethereum ETFs more market-efficient, although Seyffart noted that these in-kind redemption privileges would primarily apply to authorized participants, such as market makers and large institutional investors, without significantly altering the trading experience for retail investors.
