SEC Ushers in “New Day” for Crypto ETFs with Groundbreaking Reforms

The US Securities and Exchange Commission (SEC) has declared a “new day” through its chairman, Paul Atkins. This includes rule changes for Bitcoin and Ethereum ETFs, for example. Experts see this move as positive for crypto in the US.

The political and regulatory environment for the crypto industry in the US is gradually improving. Paul Atkins, the new SEC chairman appointed by President Donald Trump, speaks of a “new day” in a press release , and the securities regulator he leads is indeed making significant progress. It is now permitted for accredited investors in crypto ETFs, such as those for Bitcoin and Ethereum, to make deposits and withdrawals using the underlying assets. While this may not sound particularly spectacular at first, upon closer inspection, the SEC’s decision is quite groundbreaking.

Teddy Fusaro, CEO of Bitwise, explains the implications on X. Until now, Bitcoin ETFs, like Ethereum ETFs, had to organize deposits and withdrawals based on US dollars. This creates additional costs, estimated by Fusaro at 0.02 percent, which is significant for investments worth millions. Now, however, large market participants can also trade crypto ETFs based on Bitcoin or Ethereum directly, increasing efficiency and reducing price differences with crypto exchanges, Fusaro explains.

SEC treats Bitcoin and Ethereum ETFs better than ever before

Bloomberg ETF specialist Eric Balchunas adds via X : Former SEC Chairman Gary Gensler wanted to prevent such a practice with Bitcoin ETFs at all costs. Gensler’s argument: Bitcoin deposits and withdrawals in BTC could quickly enter the ETF cycle from suspicious sources. But Atkins has now equated crypto ETFs with ETFs from other classes, thus fully integrating them into the legal group of financial instruments, according to Balchunas.

Another bonus for experts is hidden in the current SEC order to increase the limits on Bitcoin options tenfold. Institutional investors are likely to welcome this, as it will allow them to better hedge their Bitcoin strategies and facilitate large-scale arbitrage without frictional losses.

Conclusion: Bitcoin ETFs in the US become even more attractive due to SEC decision

Bitcoin ETFs have existed for around a year and a half and have already generated capital inflows of over $55 billion during that time – setting new records with their speed and volume. Ethereum ETFs debuted a year ago and have so far generated almost $10 billion in capital inflows – breaking previous records here too.

“The appetite for crypto ETFs is enormous,” says Balchunas, already thinking ahead. What the SEC is now allowing for Bitcoin and Ethereum ETFs is likely to also apply to other crypto ETFs if they receive the green light from the SEC later this year, as expected. XRP (Ripple), Litecoin (LTC), and Dogecoin (DOGE), for example, are awaiting approval as ETFs, along with mixed structures.

Then, private and institutional investors will have a wide range of options, and the market for crypto ETFs will establish itself as such, comparable to precious metals and their individual cases, from gold to silver to platinum.

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