US lender Newrez to accept crypto holdings in mortgage approval

TL;DR:

The new policy will allow borrowers to use Bitcoin, Ether, crypto ETFs and US dollar-backed stablecoins for asset verification and income estimates without liquidation.

Key Points:

Background:

Exchange-Traded Funds (ETFs) are investment vehicles that track cryptocurrency prices and trade on traditional stock exchanges. Bitcoin and Ethereum ETF approvals have been major milestones for crypto adoption, allowing institutional and retail investors to gain exposure without directly holding digital assets.

Why It Matters:

ETF approvals are significant because they provide regulated access to cryptocurrency investments for traditional finance investors, potentially bringing billions in new capital to the crypto market. They also signal regulatory acceptance and legitimization of digital assets as an investment class.