TechFlow news, June 26 — According to The Block, Hester Peirce, Republican commissioner of the U.S. Securities and Exchange Commission (SEC), said that a physical redemption mechanism for cryptocurrency exchange-traded funds (ETFs) may be on the horizon.
During a panel discussion at the Bitcoin Policy Institute, when asked whether the SEC would approve physical creation and redemption mechanisms, Peirce stated: "These applications are moving through the process, and I think this is definitely something that's coming. I can't prejudge, but we've heard there's a lot of interest."
Multiple firms, including BlackRock, have requested the SEC to allow Bitcoin ETFs to use physical creation and redemption instead of the current cash-based model. Nasdaq filed a 19b-4 form on behalf of BlackRock in January this year to pursue this change, with other institutions following suit. Analysts previously noted that permitting physical mechanisms would make fund trading more efficient.
