Changes to crypto exchange-traded funds (ETFs), such as in-kind redemptions and staking permissions for Ethereum (ETH) products, are likely to come “early” under a new administration of the US Securities and Exchange Commission (SEC).
SEC Commissioner Hester Peirce shared this during a interview for Coinage that these matters could come to the regulator’s discretion once Paul Atkins takes up the role of chairman. She added:
“I am open to a reconsideration of both in kind [redemptions] and rethinking how to get people to design the products in a way that is most useful to the investors in those products.
Peirce, widely known as the “Crypto Mom” for her pro-crypto stance, also said it is “easier” to approve such changes if the majority of commissioners want things to “continue.”
Bloomberg senior ETF analyst Eric Balchunas labeled Peirce’s brief comments as “Great,” emphasize her interest in making publicly traded crypto products more useful to investors.
Balchunas stated that there can be discussions about these changes, but the important thing is that the ‘SEC gods’ are interested in them. Following this, the supervisor will develop the legal basis for the improvements.
Moreover, he reiterated his optimism about the new SEC administration, emphasizing his own recent prediction that a “wave” of crypto ETFs is a likely scenario for next year.
Accelerated development
Balchunas and his fellow Bloomberg ETF analyst James Seyffart predicted new crypto ETF approvals will happen next year. Yet developments are moving at an accelerated pace.
The SEC recently approved the hybrid ETFs filed by Hashdex and Franklin Templeton, which will simultaneously track Bitcoin (BTC) and ETH.
Despite happening earlier than analysts predicted, the green light is in line with their forecast, which expected these products to be the first to hit the market.
According to the forecast, the next ETFs are Litecoin (LTC) and Hedera (HBAR). At the same time, Solana (SOL) and XRP funds may have to wait until their regulatory status becomes clearer.