The U.S. Securities and Exchange Commission (SEC) has updated rules regarding exchange-traded funds (ETPs) for Bitcoin and Ether, opening new opportunities for crypto asset exchanges.
New SEC Rules for ETP
SEC has announced a rule change that allows authorized participants to exchange crypto assets directly for shares in Bitcoin and Ether exchange-traded funds. This enables in-kind creations and redemptions, which were previously only available for traditional commodity ETPs.
Response from SEC Chairman
SEC Chairman Paul S. Atkins described the decision as a 'new day' for the agency's approach to crypto assets. 'These orders permit in-kind creations and redemptions for a host of crypto asset ETPs,' said Atkins.
Impact on Crypto Asset Market
The new SEC rules may significantly impact the crypto asset market by providing access to new participants and facilitating more active liquidity. Increased investor interest in Bitcoin and Ether ETPs is expected as regulatory changes unfold.
The changes in SEC rules may prove to be an important step for the crypto asset market, offering new opportunities for engagement and investment in Bitcoin and Ether ETPs.
