The US Securities and Exchange Commission’s recent decision to let Crypto ETFs give Bitcoin and Ether directly for funding shares represents a upgrading structure, not a retail revolution, the analysts say.
Bloomberg’s Eric Balchunas has been called “A Plumbing Fix,” which will not affect how daily -day -to -day investors are in contact with crypto funds. “This does not mean that retail can exchange Ibit for actual Bitcoin,” he wrote to X, “but it shows that the SEC is ready to treat the crypto such as a legitimate type of owner.”
The change, announced TuesdayAsset managers are allowed to exchange crypto tokens directly for ETF shares, rather than using cash. Known as in-kind creations and redemption, the transfer cuts conversion fees, improves price accuracy and makes ETFs better, eventually benefits investors through lower cost and lighter spread.
Large institutions behind Crypto ETFs have adopted a new structure. On Thursday, the Bitwise Asset Management announced that its bitcoin (Btc) and ether (Eth) ETFs will begin to offer in-kind creations and redemption, which has been the first US crypto fund to implement the structure following the decision on July 29 of Sec.
“It only makes pipes a bit better,” Balchunas wrote, adding that former SEC chairman Gary Gensler was against the creations because of concerns over potential funds “from evil places.”
Moving brings Crypto ETFs closer to the line of traditional exchange -exchanged products, making the cost and cleaner cost better. According to Bitwise President Teddy Fusaro, the ruling Carrying Crypto funds in the “same foundation” used for institutions and ETFs.
“This transition places the basis for a deeper integration between digital assets and traditional financial systems,” Federico Brokate, head of the US business leader in 21shares in the cointelegraph.
Related: SEC has approved in-kind creations and redemption for crypto ETPs
US Bitcoin ETF holds more than 6% of total supply
The SEC’s decision and move from Bitwise came as US Bitcoin ETFs continued to accumulate Bitcoin quickly.
According to data from Bitbo, 12 US Bitcoin ETF hold 1,299,401 BTC, which represents 6.18% of the total 21 million coin supply.
Ishares Bitcoin Trust, the Bitcoin ETF from Blackrock, leads the way with 740,601 BTC worth $ 87.66 billion.
In the second place is the Fidelity Wise Origin Bitcoin Fund, holding 205,864.2 BTC worth about $ 24.37 billion. Bitwise Bitcoin ETF holds 40,638.7 BTC, worth $ 4.81 billion.
