SEC delays decision on in-kind Ethereum ETF creation

Crypto in America reports that the US Securities and Exchange Commission (SEC) has delayed its decision on a crucial aspect of Bitcoin and Ethereum-backed exchange-traded funds (ETF).

The postponement concerns the approval of "in-kind" ETF creation and redemption, which implies the use of the underlying cryptocurrencies rather than cash for transactions. The mechanism is considered more efficient in terms of tax liabilities and costs for market participants, CoinMarketCap reports. 

The Commission has pushed back the decision date to June 3, which suggest there may be unresolved issues related to operational mechanics and investor protection within the in-kind creation and redemption process, the website says. 

CoinMarketCap experts expect increased volatility in the cryptocurrency markets as the SEC decision deadline approaches. They believe the approval of Bitcoin and Ethereum ETFs with an efficient in-kind creation and redemption model could help expand the adoption of cryptocurrencies and increase institutional investment.