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SEC ACKNOWLEDGES SLEW OF CRYPTO ETF FILINGS AS REVIEWS, APPROVALS ACCELERATE
The regulator is seeking comment on filings covering crypto staking, options and altcoin ETFs, among others.
The US Securities and Exchange Commission has acknowledged some half a dozen exchange filings related to cryptocurrency exchange-traded funds (ETFs) in the past two days, according to Feb. 19 and Feb. 20 regulatory submissions.
The filings, submitted by securities exchanges Nasdaq ISE and Cboe BZX, address proposed rule changes for crypto ETFs concerning staking, options, in-kind redemptions and new types of altcoin funds, the documents show.
The SEC’s acknowledgments highlight how the agency has softened its stance on crypto since US President Donald Trump started his second term on Jan. 20. Consequently, two crypto index ETFs launched in February and analysts expect more ETF approvals to follow in 2025.
Flurry of filings
Nasdaq’s filing pertains to position and exercise limits on options tied to BlackRock’s iShares Bitcoin Trust (IBIT), the most popular spot crypto ETF, with nearly $57 billion in net assets, according to BlackRock’s iShares website.
Meanwhile, Cboe filed to list options on Grayscale’s and Bitwise’s Ether. The SEC has approved options on Bitcoin ETFs but has not yet greenlighted options on Ether ETFs.
Cboe has also asked for permission to list Canary and WisdomTree’s proposed XRP ETFs, support in-kind creations and redemptions for Fidelity’s Bitcoin and ETH ETFs, and allow 21Shares’ Ether ETF to stake a portion of its ETH holdings for additional yield.
The SEC is reportedly “very, very interested” in staking and has asked the industry to draft a memo reviewing the different types of staking and their potential benefits, Eleanor Terrett, a reporter for Fox Business, said in a Feb. 20 post on the X platform.
Terret said her source “expects to see some kind of agency guidance on staking in the near future as it’s a topic they’re engaging enthusiastically on.”
In-kind creations and redemptions, where an ETF swaps shares for a basket of underlying assets, are more tax efficient and, therefore, preferred by most ETF issuers and investors. The SEC has not yet permitted in-kind redemptions for spot cryptocurrency ETFs.
Expected approvals
Bloomberg Intelligence has set the odds of an XRP ETF approval in the US at 65%. Its estimates for Litecoin and Solana ETF approval odds are even higher, at 90% and 70%, respectively.
On Feb. 14, the SEC acknowledged Cboe’s request to list asset manager 21Shares’ XRP ETF, further signaling the SEC’s openness to approving an ETF for the altcoin.
On Feb. 19, cryptocurrency exchange Coinbase launched SOL futures contracts on its regulated US derivatives exchange. Robust futures markets generally support cryptocurrency ETF applications because they provide a stable benchmark for asset prices.
On Feb. 20, Franklin Templeton launched an ETF holding both spot Bitcoin and Ether. It was the second cryptocurrency index ETF to hit the market after asset manager Hashdex launched its Nasdaq Crypto Index US ETF (NCIQ) on Feb. 14.
In 2024, under former US President Joe Biden, the SEC allowed spot BTC and ETH ETFs to list in the US after years of resistance but barred other types of crypto ETFs from listing.
@ Newshounds News™
Source: CoinTelegraph
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HONG KONG UNVEILS ROADMAP TO BECOME GLOBAL DIGITAL ASSET HUB
Hong Kong’s Securities and Futures Commission (SFC) published a 12 point ASPIRe roadmap for the territory to become a global digital asset hub.
Until October last year, it had licensed two cryptocurrency exchanges. That figure rose to ten yesterday with the licensing of Bullish, the exchange founded by Block.one and backed by Peter Thiel.
Top of the SFC’s priority list is to introduce licensing regimes for over the counter (OTC) ‘virtual asset’ marketplaces as well as virtual asset custodians. While it wants to ensure better compliance and enhance consumer protection, it is willing to lean into the more innovative aspects of web3 that are sometimes considered risky.
Currently the following activities are not allowed in Hong Kong, even for licensed exchanges: New token issuance, margin trading, derivatives, staking, and borrowing/lending. The SFC is willing to explore each of these, but some will be restricted to professional investors, such as derivatives and borrowing/lending.
“Adhering to the core principles of investor protection, sustainable liquidity and adaptive regulation, the roadmap in itself is a calibrated response to emerging VA market challenges and thus helps future-proof our ecosystem,” said Dr Eric Yip, the SFC’s Executive Director of Intermediaries.
“The roadmap is not a final destination but a living blueprint, one that invites collective efforts to advance Hong Kong’s vision as a global hub where innovation thrives within guardrails.”
@ Newshounds News™
Source: Ledger Insights
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