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SEC Delays Critical Staking Decision for Ethereum ETFs: Here’s the Next Date! - Koin Bülteni
The Securities and Exchange Commission of the United States (SEC) has postponed the decision deadlines for Ether stake transactions and in-kind ( creation and redemption transactions with ) direct assets.
SEC continues to review significant changes for cryptocurrency-focused exchange-traded funds (ETF). In particular, decisions regarding Grayscale Ethereum Trust ETF’s Ether stake transactions and Cboe BZX exchange's in-kind creation and redemption proposals for VanEck Bitcoin and Ethereum Trust have been postponed. SEC is trying to expedite the evaluation process of these decisions within a broader digital asset regulatory framework.
Grayscale had requested the staking of Ether for Ethereum ETFs through NYSE Arca on February 14. This request needed to be decided by the SEC by April 17, but the SEC postponed the decision date to June 1, 2025, without making a decision by that date. The Cboe BZX exchange submitted a proposal for in-kind creation and redemption on February 19, and the SEC has postponed this decision until June 3, 2025.
What does in-kind creation and buybacks mean?
In-kind creation and redemptions mean that investors can exchange their crypto assets directly for ETF shares instead of cash. This method provides significant flexibility in crypto ETFs, while the SEC's decision to postpone such transactions is of great importance for the future of the crypto industry.
The SEC's delay in these decisions could be a critical step towards a broader acceptance of cryptocurrencies within a legal framework. While other countries have approved such transactions, the SEC's more cautious approach, especially following the appointment of the new chairman Paul Atkins, could shape the direction of future regulations.
The SEC's delays are seen as part of efforts to conduct a more in-depth review of digital assets and ETFs. Developments in crypto regulations are being closely monitored by investors and industry professionals.