The US SEC gives the green light to crypto ETFs, ushering in the era of commodities.

byLem, Odaily<>July 29, SEC officially allowed Authorized Participants) andrade crypto ETFs physically. This means that Bitcoin and Ethereum ETFs will now be consistent with other commodity ETFs such as oil and gold), allowing physical creation and redemption ofETF shares previously limited to cash and in cash form.

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Cash Form vs Physical Form>3: AP Settles with ETF IssCash3> <, process of creatingeeandtherETFs in cash as follows:

<>F Creation Process

>per> Fuer publishes a of amount representing total cash required to create "creation unit; P cash ETF iss;

p>F corresponding amount of crypto assets in the market and include them inETF custody pool;

>F issuer finally issues corresponding number of ETF AP.

strong>Process

AP these shares to ETiss> F corresponding Bitcoin/Ethereum spot market to convert to cash>>>Issthis cash to AP completing redemption.

<>Physical Form: AP Settlesf "Physical" Coins) <>ETF Creation Processp> F defines a creation unit usually thousands of ETF shares with net asset valueNAV) total assets AP must deliver;

>delivers pre-agreed crypto asset basket to custody account through safe custody and transferprotprotocol;

uer assets, issues corresponding ETF shares to AP.

tion Process henF market below NAV,ys least one creationf shares;

> p>ETF sharesues, request "physical redemption">> uer confirms receipt, transfers equivalent crypto to custody account based on latest NAVand and holding weights.

>Significance?

p>From above, physical creationre/redemption doesn't mean retail investors can ETF shares,, but refers to settlement between AP and ETisswith from cash physical" with following benefits:EAP, Improve Efficiency >cashF trading might trigger capital capital gains at fund level, transfer while physical transfer generally doesn't constitute fund-level capital further reducing tax.

> h3ETRedemption's Market Price Impact physicalredemption AP receives crypto market trading, with AP's subsequent strategy being more dispersed, market,-, structural buffer for larger future large-inflowsment.

>3Assets Mainstream Financial Deep Structure ysintroduction means crypto integrated into mainstream commodity system, promoting global institutional configuration crypto asset allocation.