The Securities and Exchange Commission (SEC) has approved an order that allows certified participants to create and redeem shares of the type of stock in Spot Bitcoin (BTC) and Ethereum (ETH) Exchange -Traded Products (ETP).
According to Statement on July 29ththe agency framed the move as adjusting crypto funds with standard practices in product-based ETP. He also said the changes should reduce costs and increase market efficiency.
Chairman Paul Atkins said in a statement:
“This is a new day in the SEC, and my chair’s key priority is to develop a response regulatory framework suitable for the cryptocurrency market. Investors will benefit from these approvals as they make these products more costly and efficient.”
Jamie Selway, who heads the trade and market division, called the decision “a “critical development” that adds flexibility to publishers and accredited participants.
The committee also approved the exchange application and advanced the broader measures by listing the increase in positions up to the general 250,000 contract caps of mixed spot Bitcoin and ether ETP, specific spot Bitcoin ETP options, flex options for shares of several BTC-based ETPs, and specific BTC ETP listing options.
Additionally, the SEC has issued a scheduling order seeking comment on the delegation approval of two large encryption-based ETP.
The move follows the CBOE fixes for these products on July 22, which ETF analysts considered. As a positive indication.
Internal meaning
Under new orders, certified participants (APS) may provide or receive BTC or ETH when creating or redeeming ETF shares. APs are usually large trading companies and banks.
To most investors, trading looks the same. This is because stocks change handover practices and closely track net asset value. As a result, the shift is structural, allowing the AP to move the crypto directly, rather than procure or unlock large cash positions.
This allows funds to lower friction, tighten spreads, and manage baskets more efficiently, especially in volatile markets.
Bloomberg’s Eric Baltunas wrote to X that the agency “approved the pre-made creation/redemption of all spot bitcoin and ether ETFs.” addition “Granting approval to grant an order” is potentially indicating more decisions by early fall.
James Seyffart predicted future Altcoin ETFs It probably will start He put on the skin from the start, and he called “more movements in the right direction.”