SEC crypto ETFs ruling brings structural fix, not retail shakeup: Analysts

Bitwise is the first to act on the SEC’s rule change, though analysts say it’s a backend fix, not a retail breakthrough.

The US Securities and Exchange Commission’s recent decision to let crypto ETF issuers swap Bitcoin and Ether directly for fund shares represents a structural upgrade, not a retail revolution, analysts say.

Bloomberg’s Eric Balchunas called the change “a plumbing fix,” noting it won’t meaningfully affect how everyday investors interact with crypto exchange traded funds. “This doesn’t mean retail can exchange IBIT for actual bitcoin,” he wrote on X, “but it shows the SEC is ready to treat crypto like a legit asset class.”

The change, announced Tuesday, allows asset managers to exchange crypto tokens directly for ETF shares, instead of using cash. Known as in-kind creations and redemptions, the move cuts out conversion fees, improves price accuracy and makes the ETFs more efficient, ultimately benefiting investors through lower costs and tighter spreads.

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