"Cost Reduction and Structural Improvement Purposes"
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With the introduction of the spot issuance system, ETF approval agents can now issue or redeem stocks directly through underlying cryptocurrencies such as Bitcoin or Ethereum, in addition to the existing method of exchanging stocks through cash. This method is evaluated as an efficient structure with the effect of reducing market selling pressure and transaction costs.
SEC Chairman Paul Aikins said, "Establishing an appropriate regulatory framework for the cryptocurrency market is our top priority" and "Spot issuance approval will reduce costs and increase efficiency."
Jamie Selway, SEC's Head of Trading and Markets, explained, "Spot issuance and redemption provide flexibility and cost savings for both ETP issuers and investors."
Prior to the SEC's spot issuance approval, only cash redemption was allowed when Bitcoin and Ethereum ETFs were approved in 2024, but as industry requests continued, regulatory relaxation emerged, and spot ETPs were finally launched.
The background of spot issuance approval is largely due to the changed regulatory situation in the United States. Following the Trump administration's emphasis on implementing cryptocurrency industry support policies after its launch, significant progress was made on cryptocurrency-related regulations in Congress this month.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
