SEC Commissioner Hester Peirce Signals Pro-Crypto Changes for 2025, Including Bitcoin ETF In-Kind Redemptions and Staked ETH ETFs Under New Chair Paul Atkins

Dec 20, 2024, 06:27 PM

SEC Commissioner Hester Peirce has indicated that the Securities and Exchange Commission (SEC) is poised to implement pro-crypto changes, including the introduction of in-kind redemptions for Bitcoin spot ETFs as early as 2025. This would allow investors to purchase the ETF with cash and subsequently withdraw Bitcoin directly to their self-custody wallets. Peirce also mentioned that the ability for ETF issuers to begin staking could be implemented early on. These changes are part of a broader transition at the SEC as Chair Gary Gensler prepares to step down, with incoming chair Paul Atkins expected to prioritize cryptocurrency issues and foster a pro-innovation environment at the SEC. Both Bitcoin and Ethereum ETFs have now surpassed $100 billion in assets under management (AUM), and there is anticipation around the potential introduction of staked ETH ETFs.