EddieJayonCrypto
29 Jul 25
The SEC has approved orders allowing in-kind creations and redemptions for crypto asset ETP shares, aligning bitcoin and ether ETPs with other commodity-based ETPs. This change is expected to reduce costs and improve market efficiency. The SEC also approved measures to support a merit-neutral approa...
Washington D.C., July 29, 2025 — The Securities and Exchange Commission (SEC) has approved orders permitting in-kind creations and redemptions by authorized participants for crypto asset exchange-traded product (ETP) shares. This marks a significant shift from previous approvals of spot bitcoin and ether ETPs, which were restricted to in-cash creations and redemptions. The new orders align bitcoin and ether ETPs with other commodity-based ETPs, allowing share creations and redemptions on an in-kind basis.
SEC Chairman Paul S. Atkins highlighted this decision as a milestone in establishing a fit-for-purpose regulatory framework for crypto asset markets. He emphasized that these approvals will reduce costs and improve efficiency for investors. Jamie Selway, Director of the Division of Trading and Markets, added that in-kind creations and redemptions will provide flexibility and cost savings for issuers, authorized participants, and investors, ultimately fostering a more efficient market.
In addition to these orders, the SEC approved other measures supporting a merit-neutral approach to crypto-based products. These include applications to list and trade ETPs holding mixed spot bitcoin and spot ether, options on certain spot bitcoin ETPs, Flexible Exchange (FLEX) options on BTC-based ETP shares, and increased position limits for options on these ETPs. Furthermore, the Commission issued scheduling orders inviting public comments on proposals to list and trade two large-cap crypto-based ETPs under delegated authority.