Anthony Scaramucci, the founder of SkyBridge Capital, thanked pro-cryptocurrency SEC Commissioner Hester Pierce for her role in getting the agency to approve in-kind creations and redemptions for cryptocurrency exchange-traded funds.
What Happened: Scaramucci thanked Peirce, affectionately called "Crypto Mom," for her “incredible hard-fought contribution" after the SEC permitted authorized participants to exchange ETF shares directly for the underlying cryptocurrency, such as Bitcoin BTC/USD and Ethereum ETH/USD, instead of cash.
"I am pleased the Commission approved these orders permitting in-kind creations and redemptions for a host of crypto asset ETPs. Investors will benefit from these approvals, as they will make these products less costly and more efficient," SEC Chair Paul Atkins said.
This move could enable cost-cutting and operational efficiency by avoiding the need to sell Bitcoin for cash. Note that retail investors are not eligible to participate directly in in-kind redemptions.
See Also: Bitcoin Trades Flat Ahead Of Fed Interest Rate Decision; Ethereum, Dogecoin Gain: Analyst Says ‘Next Impulse’ Will Send BTC To $130,000
Why It Matters: The approval reflected a marked departure from the SEC's previous stance of mandating cash redemptions since the approval of spot Bitcoin ETFs in January 2024.
Several proposals to allow in-kind redemptions for cryptocurrency ETFs have been made this year, including one for the iShares Bitcoin Trust ETF IBIT, the world's largest cryptocurrency fund.
Bloomberg analyst James Seyffart expected the upcoming approvals for altcoin ETFs to have the in-kind feature from the beginning.
Price Action: At the time of writing, ETH was trading at $3,766.85, down 2.06% in the last 24 hours, according to data from Benzinga Pro.
BitMine shares closed 11.8% lower at 35.11 on Wednesday. Year-to-date, the stock has soared over 350%.
As of this writing, the stock demonstrated a very high Momentum score. Visit Benzinga Edge Stock Rankings to see how Strategy Inc. MSTR, the pioneer of cryptocurrency treasury play, stacks up.
Photo Courtesy: Al Teich On Shutterstock.com
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