Crypto exchange-traded funds (ETF) are on the brink of significant changes, with SEC Commissioner Hester Peirce hinting at potential adjustments such as in-kind redemptions and staking permissions for Ethereum (ETH) products. In a recent interview for Coinage, Peirce expressed her openness to reconsidering these matters under the new SEC administration.
Peirce, affectionately known as “Crypto Mom” for her supportive stance on cryptocurrencies, emphasized the importance of allowing product designers to create offerings that are most beneficial to investors. With Paul Atkins set to assume the role of chairperson, Peirce suggested that these changes could be on the horizon sooner rather than later.
Eric Balchunas, a senior ETF analyst at Bloomberg, commended Peirce’s interest in making publicly traded crypto products more investor-friendly. He noted that while discussions regarding these changes are essential, the ultimate decision lies with the SEC and its willingness to explore new avenues for crypto ETFs.
Looking ahead, both Balchunas and his colleague James Seyffart predicted a wave of new crypto ETF approvals in the coming year. This forecast has already started to materialize, with the recent approval of hybrid ETFs tracking Bitcoin (BTC) and ETH by Hashdex and Franklin Templeton.
Despite the accelerated pace of these developments, the approval aligns with analysts’ expectations of these products being the first to enter the market. The next ETFs in line for approval are predicted to track Litecoin (LTC) and Hedera (HBAR), while funds for Solana (SOL) and XRP may face delays pending regulatory clarity.
The evolving landscape of crypto ETFs reflects a growing interest in digital assets within the traditional financial sector. As regulatory barriers continue to be navigated, investors can look forward to a more diverse range of crypto investment opportunities in the near future.