The U.S. Securities and Exchange Commission (SEC) has delayed its decision regarding the possibility of in-kind creations and redemptions for Bitcoin and Ethereum spot ETFs until June 3.
What is in-kind creation?
In-kind creation involves exchanging underlying assets like Bitcoin and Ethereum directly without the need for cash conversion. This approach was banned by the SEC under Gary Gensler's leadership due to concerns over tax avoidance. However, these transactions help maintain liquidity and price stability.
User Reactions to SEC Delays
Eleanor Terrett's post on X garnered significant attention and comments from users. Some criticized the SEC’s delays, citing uncertainty for investors. One user mentioned, "Paul Atkins delaying things was not on my bingo card."
Outlook under New SEC Leadership
User opinions suggest that these delays are related to the new SEC head, Paul Atkins. Unlike Gensler, Atkins appears to be interested in crypto innovation, raising hopes for changes in SEC policy. However, the confirmation process for Atkins is not yet complete, and users are waiting for improvements in SEC operations in the coming days.
The SEC's delay on decisions regarding in-kind creations for ETFs continues to spark discussions among investors. With changes in SEC leadership, there are expectations for improvements in the regulation of the crypto industry.
