In a move that has captured the attention of the cryptocurrency world, the US Securities and Exchange Commission (SEC) has postponed its decision regarding VanEck’s request for an in-kind creation mechanism for its spot Bitcoin ETF. This delay also affects WisdomTree’s similar application for a spot Ethereum ETF. The decision is now set to be made by June 3, 2025.
The in-kind creation model, which involves directly exchanging underlying assets like Bitcoin and Ethereum without first converting them into cash, was initially opposed by the SEC for various reasons, including concerns about tax implications. However, this model could help improve market liquidity for both Bitcoin and Ethereum, eliminating the need for cash-based transactions, which can create inefficiencies.
The SEC’s delay is part of a broader shift in its stance on cryptocurrency products, with some market analysts interpreting the delay as a sign that the SEC may be softening its approach toward crypto ETFs. This change in attitude is leading to rising expectations that the approval of such ETFs may be closer than initially anticipated.
This decision also comes amid the SEC’s delayed ruling on Grayscale’s staking bid for its Ethereum ETF, further emphasizing the regulator’s ongoing scrutiny of crypto-related financial products.
As the crypto community eagerly awaits the SEC’s final decision, the outlook for Bitcoin and Ethereum ETFs remains highly uncertain but hopeful. This is a developing story, and updates will be provided as more information becomes available.
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