SEC Eyes Physical Redemption for Crypto ETFs

Krutika Adani

SEC Weighs New Crypto ETF Mechanism

Commissioner Hester Peirce reveals that the SEC is actively exploring physical redemption—an in-kind method long used in traditional ETFs.

Why Physical Redemption Matters

Unlike cash redemptions, physical redemptions minimize slippage and reduce transaction fees—key for improving ETF efficiency.

BlackRock & Industry Giants Show Interest

With firms like BlackRock signaling support, the potential ETF reform could draw significant institutional capital into crypto.

What This Could Mean for Investors

More efficient ETF structures = More trust, better pricing, and a new era of institutional crypto adoption.

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