In the U.S., the SEC allows in-kind redemptions for bitcoin and ether ETFs, improving efficiency for institutional traders by avoiding fiat conversions. Hong Kong had this option since 2024, with stricter requirements for crypto exchanges and custody solutions.
In the U.S., regulators hesitated due to concerns over custody and market manipulation, favoring cash-only redemptions. SEC Commissioner Mark Uyeda criticized the agency’s approach, questioning why crypto was treated differently from commodity-based ETFs and warning of troubling precedents.
Hong Kong’s regulator had a clearer approach to crypto ETFs, allowing in-kind redemptions early on with strict licensing and custody requirements, avoiding internal contradictions seen in the U.S. rollout. However, tracking flows for ETFs with physical bitcoin subscriptions remains challenging.
Bitcoin trades above $117,500 with weak momentum due to ETF outflows and macro headwinds. Ethereum is above $3,700, with institutions seeing it as a strong bet alongside bitcoin. Gold rebounds to $3,334, and the Nikkei 225 opens mixed in Asia-Pacific markets. The S&P 500 ends a six-day record streak. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling 500 points. Analysts attribute the decline to concerns about the ongoing trade war with China and slowing global economic growth.
2. A new study published in a medical journal suggests that eating a diet rich in fruits and vegetables can lower the risk of developing type 2 diabetes. The researchers found that individuals who followed a plant-based diet had a 23% lower risk of developing the disease.
3. The United Nations released a report highlighting the urgent need for action to address climate change. The report warns that the world is not on track to meet the goals set out in the Paris Agreement, and calls for more ambitious efforts to reduce greenhouse gas emissions.
4. In sports news, the defending champions were upset in a thrilling overtime match last night. The underdog team scored a last-minute goal to secure the win, shocking fans and analysts alike. The victory marks a major upset in the tournament.
Read more at Yahoo Finance: SEC’s In-Kind BTC, ETH ETF Redemption Shift Happened Years Ago in Hong Kong