SEC Greenlights Crypto ETFs: Grayscale's Litecoin and BlackRock's Bitcoin

Coin WorldThursday, Feb 6, 2025 7:38 pm ET
1min read
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The U.S. Securities and Exchange Commission (SEC) has taken significant steps towards advancing the crypto industry by acknowledging several key filings related to exchange-traded funds (ETFs). These developments include the recognition of Grayscale's proposed spot Litecoin (LTC) ETF and BlackRock's application to allow in-kind redemptions for its iShares Bitcoin ETF (IBIT).

Analysts view these acknowledgments as crucial steps towards potential approval, with some speculating that the SEC may opt to approve multiple crypto ETFs in a single batch. The shift towards in-kind redemptions could enhance efficiency and reduce tax liabilities for institutional participants, making the ETF structure more attractive.

The SEC's engagement with new crypto ETF structures signals ongoing developments in digital asset regulation. The approval of spot Bitcoin ETFs has paved the way for additional crypto-related investment vehicles, with Litecoin now being considered a potential second-mover in the altcoin ETF space. Market participants are watching whether in-kind redemption models gain regulatory approval, which could influence the long-term operation of spot Bitcoin ETFs.

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