The landscape for crypto exchange-traded funds (ETF) is set to undergo significant changes under the new US Securities and Exchange Commission (SEC) administration. SEC Commissioner Hester Peirce, known as the “Crypto Mom” for her pro-crypto stance, anticipates that alterations such as in-kind redemptions and staking permission for Ethereum (ETH) products will be up for review early on during Paul Atkins’ tenure as chairperson.
During an interview with Coinage, Peirce expressed her openness to reconsidering these changes to better cater to investors’ needs. She emphasized the importance of allowing flexibility in designing products that are most useful to investors. Peirce also noted that it is easier to approve such changes when there is a consensus among Commissioners.
Bloomberg senior ETF analyst Eric Balchunas commended Peirce’s stance, highlighting her commitment to enhancing the functionality of publicly traded crypto products for investors. He emphasized the significance of the SEC’s interest in these matters, indicating that the regulator will work towards establishing a legal framework for these improvements.
Balchunas and fellow Bloomberg ETF analyst James Seyffart predict that new crypto ETF approvals will accelerate next year. The recent approval of hybrid ETFs by Hashdex and Franklin Templeton, tracking Bitcoin (BTC) and ETH simultaneously, aligns with their forecast. They anticipate that Litecoin (LTC) and Hedera (HBAR) ETFs will follow suit, while Solana (SOL) and XRP funds may need to await clearer regulatory status.
Overall, the evolving landscape of crypto ETFs under the new SEC administration signifies a positive outlook for the sector’s development. These advancements are poised to offer investors more diversified options and opportunities within the crypto market.