The US Securities and Stock Exchange Commission (SEC) has not yet made a definite decision on the implementation of two important features regarding spot crypto securities. The regulatory institution postponed the decision process on the adoption of the stinging feature for Ethereum Trust products proposed by Grayscale with the application of Bitcoin and Ethereum funds offered by Wisdomre and Vaneck.
Crypto ETF decisions
The SEC postponed the decision on the application of the In-Kind Redemption for Wisdomtree and Vaneck funds. In addition, Grayscale’s decision on the stinging proposal presented again was redefined and the time for the evaluation of the relevant application was extended. The in-Kind Redemption decision of the regulatory institution for Bitwise and WisdomTree products is on June 3; Grayscale’s stinging proposal is expected to clarify its decision until June 1.
Global arrangements and expert opinions
In addition, the CBOE Exchange, where five different funds providers traded, re -presented their files for applications for Fidelity Ethereum Fund and Franklin Ethereum ETF applications. While the SEC did not allow stinging in Spot Ethereum funds before, it is considered that there is a possibility of going to policy changes to this practice in the upcoming periods with the newly appointed President Paul Atkins.
On the other hand, although stinging is approved in regions such as Hong Kong, Canada and Europe, it is known that this will not put direct pressure on the SEC. Experts, SEC will act outside the tempo determined by their own, while external factors may have a limited impact on regulatory decisions, sharing the opinion.
James Seyffart: “SEC can take lessons from other regulators’ applications, but will progress at their own speed.”
These delays create uncertainty about implementing the strategic features that relevant fund providers want to add to their products. While investors and observers closely follow the SEC’s decision process, the regulator can take a more flexible approach with the new president.
On the other hand, the in-Hind Redemption and Starting applications, which are intended to be applied in products, are important in terms of providing diversity in investment strategies and increasing potential return. The final decision of the institution on these applications will be effective in determining innovative financial products in the market.
In the evaluations, while the SEC tends to take steps in process management by examining both local and international examples, the practices of other regulatory institutions on the market are taken into consideration. This indicates that the applications for the relevant products will be clarified in the future.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
