Changes to crypto exchange-traded funds (ETFs), such as in-kind redemptions and staking authorization for Ethereum (ETH) products, are likely to happen “early on” under the new administration of the United States Securities and Exchange Commission (SEC).
SEC Commissioner Hester Peirce shared during a interview for Coinage that these issues could be subject to review by the regulator as soon as Paul Atkins takes up the role of chairman. She added:
“I’m willing to reconsider both in-kind redemptions and staking to think, again, about how you can allow people to design the products in a way that’s most useful for investors in those products.”
Peirce, commonly known as “Crypto Mom” due to her pro-crypto stance, also said it is “easier” to approve such changes when the majority of commissioners want things “to happen.” “.
Eric Balchunas, senior ETF analyst at Bloomberg, called Peirce’s brief remarks “great“, emphasizing his interest by making publicly traded crypto products more useful to investors.
Balchunas said discussions could take place regarding these changes, but the most important thing is that the “SEC gods” are interested. Accordingly, the regulator will develop the legal basis for the improvements.
Additionally, he reiterated his optimism about the new SEC administration, emphasizing his recent prediction that a “wave” of crypto ETFs is a likely scenario for next year.
Accelerated development
Balchunas and fellow Bloomberg ETF analyst James Seyffart predicted that new crypto ETF approvals would occur next year. Yet developments are occurring at an accelerating pace.
The SEC recently approved hybrid ETFs filed by Hashdex and Franklin Templeton, which will track Bitcoin (BTC) and ETH simultaneously.
Although it came earlier than analysts expected, the green light is in line with their forecasts, which expected these products to be the first to hit the market.
According to predictions, the next ETFs to follow are Litecoin (LTC) and Hedera (HBAR). At the same time, Solana (SOL) and XRP funds may have to wait until their regulatory status becomes clearer.
