Changes to crypto exchange-traded funds (ETFs) such as non-cash redemptions and equity authorization for Ethereum (ETH) products, possibly “early” under the new administration of the US Securities and Exchange Commission (SEC).
SEC Commissioner Hester Pierce Shared during interview For Coinage, these issues may come up for regulatory review once Paul Atkins takes over as chairman. He added:
“I'm open to rethinking both the (repurchase) and betting types to rethink how you can allow people to design products in a way that's most beneficial to investors in those products.”
Pearce, who is commonly known as the “Cryptomother” for her pro-crypto stance, also said it's “easier” to approve such changes when most commissioners want things to be “fixed.”
Senior Bloomberg ETF Analyst Eric Balchunas Pearce's brief remarks as “great“ highlight his interest In making public crypto products more useful for investors.
Balchunas stated that there may be some debate about these changes, but the most important thing is that the “Gods of the SEC” are interested in them. Consequently, the regulator will determine the legal basis for the improvements.
In addition, he expressed his optimism about the new administration of the SEC Recent forecast A “wave” of crypto ETFs is a likely scenario for next year.
Rapid development
Balchunas and his fellow Bloomberg ETF analyst James Seyfart It predicted that new crypto ETF approvals will happen next year. However, developments are happening at a rapid pace.
The SEC recently approved hybrid ETFs offered by Hashdex and Franklin Templeton that track Bitcoin.Bitcoin) and ETH simultaneously.
Despite coming earlier than analysts expected, the green light is consistent with expectations that these products would be the first to hit the market.
As predicted, the next ETF to follow is Litecoin (LTC) and Hedra (HBAR). At the same time, Solana (SOL) and XRP Funds may have to wait until their regulatory status becomes clearer.
