According to the dry, this represents a change from bitcoin and ether of recently approved ETPs, which were limited to the creation and cash repurchase. From now on, Bitcoin and Ether ETPs, like the other FTEs based on raw materials approved by the Commission, will be able to create and buy shares in kind.
“This is a new day at the dry, and a key priority of my presidency is to develop an appropriate regulatory framework for the markets of cryptocurrency,” said the president of the dry Paul S. Atkins.
“I am happy that the Commission has approved these orders authorizing the creation in kind and the acquisition of a range of ETPS of cryptoset. Investors will benefit from these approvals, because they will make these products cheaper and more effective,” he added.
For the dry, these changes “continue to build a rational regulatory framework for cryptocurrencies, leading to a deeper and more dynamic market that will benefit all American investors. This decision is aligned with standard practices for similar ETPs. ”
Jamie SelwayDirector of the Tradings and Markets Division, said: “The decision of the Commission today marks a significant step for the growing market of ETPs based on cryptocurrencies. Creation and redemption in kind offers flexibility and cost savings to ETP issuers, authorized participants and investors, resulting in a more efficient market. ”
The Commission also voted to approve other orders to the promotion of a neutral approach to the merit of products based on cryptocurrencies, including exchange applications seeking to enumerate and exchange an ETP containing a combination of bitcoin and Spot ether options, certain ETPs based on BTCOIN, flexible positions (flexible).
In addition, the Commission made two planning orders requiring comments for or against approval by the division of exchanges and markets, under the delegated authority, proposals by a national exchange of securities to list and exchange two ETPs based on large capitalization cryptocurrencies.
