The amendment mainly impacts institutional players by increasing efficiency and potentially reducing operational costs. It enables these participants to transact ETF shares for Bitcoin or Ethereum rather than using cash, which was the previous requirement. However, this change does not affect retail investors directly.
Fidelity’s change could foster deeper ETF liquidity, potentially narrowing premium/discount gaps in ETF shares. Historical trends show that similar international provisions have supported market liquidity and efficiency, which might reflect in the U.S. market following this amendment. This shift could invite more institutional participation and align U.S. spot crypto ETFs more closely with traditional ETF norms worldwide.
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