FILE PHOTO: Sparks strike representation of cryptocurrency Bitcoin in this illustration taken November 24, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -The U.S. Securities and Exchange Commission will allow in-kind creations and redemptions for crypto exchange-traded products, a move that asset managers have sought since the regulator approved the first set of products tied to the spot price of bitcoin last year.
The SEC had approved bitcoin and ether exchange-traded funds on the condition they provide redemptions in cash, rather than in crypto. Issuers had argued commodity ETFs typically allow for creations and redemptions in the underlying commodity, and that the crypto products should be treated similarly.
(Reporting by Hannah Lang in New York; Editing by Chris Reese)
