Recently, the crypto assets market has welcomed significant news. It is reported that six well-known financial institutions, including 21Shares, Fidelity, and Franklin Templeton, have submitted a physical redemption amendment for Bitcoin and Ethereum ETFs to the SEC. This move has sparked widespread attention in the market.

The core content of this amendment is to allow institutional investors to directly exchange ETF shares for Crypto Assets, without the cumbersome process of first selling the ETF and then purchasing Crypto Assets. Bloomberg ETF analyst James Seyffart believes this move suggests that the SEC may be in close communication with these institutions regarding relevant details, which is seen as a positive signal of a shift in the regulatory stance towards the Crypto Assets market.

However, it is worth noting that this "physical redemption" mechanism seems to be primarily aimed at large financial institutions such as Goldman Sachs and Morgan, and ordinary investors may not be able to participate directly. Nevertheless, this change may still have a profound impact on the entire crypto assets market.

Expert analysis suggests that the introduction of a physical redemption mechanism may reduce selling pressure in the market. Under the existing model, when institutions redeem ETFs, fund companies need to sell crypto assets to meet redemption demands, which may lead to market price fluctuations. However, under the physical redemption mechanism, institutions can directly obtain crypto assets, thereby reducing selling pressure in the market and helping to stabilize coin prices.

Moreover, this mechanism may also alleviate the concerns of large institutions regarding increasing their holdings of crypto assets. In the past, institutions might have been worried that large-scale redemptions could trigger market turmoil, but the emergence of a physical redemption mechanism could alleviate this concern and provide institutional investors with more flexible operational space.

Overall, this new trend demonstrates the ongoing follow-up and layout of traditional Financial Institutions in the Crypto Assets market. With the regulatory environment gradually clarifying and the market mechanisms continuously improving, the Crypto Assets market is expected to usher in a new round of development opportunities. However, investors still need to be cautious and closely follow the implementation of relevant policies and market changes.