Recent changes in US legislation allow five companies to submit revised applications for cryptocurrency ETFs. These submissions concern the implementation of in-kind features that could significantly impact the cryptocurrency market.
Benefits of In-Kind Features for ETFs
The in-kind feature allows investors to enter or exit an ETF by directly utilizing and exchanging assets instead of using cash, promoting cost-effectiveness and operational efficiency. This method, commonly utilized in traditional ETFs, is now aimed at being adapted to crypto ETFs.
Expert Predictions for Crypto ETFs
Industry analyst James Seyffart predicts that the induction of the in-kind feature into the realm of crypto ETFs following these recent applications could unfold. He suggests regulatory approval may usher in a transformative era for the market.
> James Seyffart: 'I believe at least one crypto ETF will soon receive regulatory approval for the in-kind feature.'
SEC's Evaluation of New Applications
The SEC’s primary concern with these proposals is centered around safeguarding investors and ensuring market reliability. Known for stressing transparency, the SEC has yet to finalize evaluations regarding the in-kind feature’s inclusion in crypto ETFs.
> SEC Spokesperson: 'We approach all applications equally and conduct the process meticulously to protect investors.'
The incorporation of in-kind features into crypto ETFs could lessen operational hazards for providers while granting more flexibility to investors. This evolution may lead to the introduction of clearer and more cost-effective trading processes.
