- SEC invites public feedback on BlackRock’s Bitcoin ETF in-kind redemption model.
- Nasdaq’s proposed rule change for ETF trading efficiency under review.
- Ethereum price surges 50% as ETF momentum gains traction.
The U.S. SEC has postponed its decision regarding BlackRock’s proposed in-kind redemption model for its Bitcoin ETF. It is requesting public comments to assess legal and policy implications.
Simultaneously, Ethereum is experiencing a significant price surge. It is climbing back to the $2,700 mark and marking a 50% increase in just one week.
Ethereum ETF Surge and SEC’s BlackRock Bitcoin ETF Delay Signal Crypto Market Shift
The U.S. Securities and Exchange Commission (SEC) has opted to extend its review of BlackRock’s proposed in-kind redemption model for its Bitcoin ETF. This move has drawn mixed reactions from industry analysts. If approved, the model would enable the direct exchange of Bitcoin for ETF shares. This could streamline transactions and enhance liquidity. However, the SEC’s request for public feedback highlights ongoing regulatory caution surrounding digital asset ETFs.
BlackRock’s Bitcoin ETF, launched in January 2024, currently operates on a cash redemption basis. This requires Bitcoin to be converted to cash during redemptions. Transitioning to an in-kind model could reduce conversion costs. It would align with conventional ETF structures, potentially making the fund more attractive to institutional investors. The outcome of the SEC’s decision may also influence the future structure of other crypto ETFs seeking approval.
On the same day, the SEC delayed rulings on Grayscale’s Litecoin and Solana Trusts and requested additional information on the 21Shares Dogecoin ETF. The agency’s comprehensive approach suggests a strategic review of how digital asset ETFs are structured and managed, particularly regarding investor protection and market stability.
Meanwhile, Ethereum’s recent price surge reflects heightened optimism in the altcoin market. It is buoyed by the positive performance of Ethereum-based ETFs. Ethereum has reclaimed the $2,700 mark, driven by increased institutional interest and renewed investor confidence in digital assets. This is amid regulatory scrutiny. Analysts are closely watching for further SEC guidance. This could significantly impact market sentiment and investment strategies.
The SEC’s latest move underscores its cautious approach to crypto ETFs. This potentially sets the stage for pivotal changes in how digital asset funds are structured and traded.
“Transitioning to an in-kind redemption model could redefine the efficiency of Bitcoin ETFs and reshape investor strategies,” said James Seyffart, Bloomberg analyst.
