The U.S. Securities and Exchange Commission (SEC) has approved the creation and redemption of Bitcoin and Ethereum ETFs, which may change the cryptocurrency market.
SEC Approval and Its Implications
The SEC, led by Chairman Paul Atkins, has approved in-kind creations and redemptions for Bitcoin (BTC) and Ethereum (ETH) ETFs, allowing for actual cryptocurrencies instead of cash. This is expected to reduce transaction costs by up to 20% and enhance market liquidity.
Trump Administration's Position
The approval comes amid a changing regulatory landscape in the U.S. under the Trump administration, supported by the passage of three crypto-friendly bills in Congress, including the Genius Act.
Criticism and Future of Altcoins
The SEC's decision has faced criticism from some users claiming it favors BTC and ETH, sidelining altcoins like XRP and Solana. Analysts suggest that these new provisions might lead to future altcoin ETFs.
This approval signals the maturation of the cryptocurrency market and the potential for more balanced regulation for all tokens in the future.
