The post SEC Reviews Possible Physical Redemption Mechanism for Bitcoin ETFs, Signaling Potential Market Changes appeared on BitcoinEthereumNews.com.

The SEC is actively reviewing the approval of physical redemption mechanisms for cryptocurrency ETFs, signaling a potential shift in how these investment products operate. This development, highlighted by SEC Commissioner Hester Peirce, could reduce transaction costs and enhance liquidity, attracting greater institutional interest in crypto ETFs. According to COINOTAG, Peirce emphasized that many companies, including major players like BlackRock, are keenly interested in this evolution, which may reshape the ETF landscape. SEC’s review of physical redemption in crypto ETFs could boost liquidity and institutional adoption, marking a pivotal change in crypto investment structures. ‘, ‘ 🚀 Advanced Trading Tools Await You!Maximize your potential. Join now and start trading! ‘, ‘ 📈 Professional Trading PlatformLeverage advanced tools and a wide range of coins to boost your investments. Sign up now! ‘ ]; var adplace = document.getElementById(“ads-bitget”); if (adplace) { var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”)); var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex; adplace.innerHTML = adscodesBitget[adsindex]; sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1; sessionStorage.setItem(“adsindexBitget”, sessperindex); } })(); SEC’s Consideration of Physical Redemption in Crypto ETFs: A Game Changer for Market Efficiency The U.S. Securities and Exchange Commission (SEC) is currently evaluating the feasibility of allowing physical redemption in cryptocurrency exchange-traded funds (ETFs). This mechanism permits investors to redeem ETF shares in-kind, exchanging the underlying assets directly rather than cash. This shift promises to reduce transaction costs and slippage, which are significant barriers in the current crypto ETF market. By enabling physical redemption, ETFs can operate more efficiently, improving liquidity and potentially lowering fees for investors. Commissioner Hester Peirce has publicly acknowledged the SEC’s ongoing review, noting strong industry interest from firms such as BlackRock, which could accelerate adoption once regulatory clarity is achieved. Implications of Physical Redemption for Institutional Investors and Market Dynamics Physical redemption…

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Filed under: News - @ June 26, 2025 8:29 am