SEC don approve In-Kind Redemption for Bitcoin & Ethereum Spot ETFs
US Securities and Exchange Commission (SEC) don approve in-kind redemptions for spot Bitcoin and Ethereum ETFs, wey allow authorized people to exchange ETF shares directly for BTC and ETH. The SEC new in-kind redemptions policy dey align US ETF rules with Hong Kong and e replace cash-only creations and redemptions, reduce conversion costs and tracking errors. Dis change e fit help improve liquidity, reduce spreads, and boost arbitrage, fit attract more institutional money. Since the update, total crypto market cap don drop 3.8%, Bitcoin dey trade near $118,000 (-0.4%), Ethereum don rise 0.7% above $3,800. Spot ETH ETFs don record net inflows for 18 days straight, na their second longest streak. Traders go dey watch how better ETF efficiency fit affect market stability and institutional demand.
Bullish
Enabling in-kind redemptions dey reduce transaction cost an tracking errors for Bitcoin an Ethereum spot ETFs. Better liquidity an narrow spreads dey help arbitrage, attract institutional capital, an support demand. For short term, these ETF efficiency gains fit stabilize pricing an reduce volatility. For long term, more institutional participation fit support steady price increase for BTC an ETH.