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SEC Authorizes In-Kind Redemption Mechanism for Bitcoin and Ethereum ETFs
Gate News bot message, the U.S. Securities and Exchange Commission (SEC) has authorized the use of in-kind redemptions for spot Bitcoin and Ethereum ETFs. This mechanism allows authorized participants to redeem ETF shares directly for the underlying cryptocurrency assets, rather than cash settlements.
The decision comes after extensive discussions between the SEC and ETF issuers, marking a significant development in the regulatory framework for cryptocurrency investment products in the United States. The approval applies to both existing Bitcoin ETFs and potential future Ethereum ETF products.