“This introduces significant transaction costs, exposes the product and its investors to price slippage in the underlying asset class, and makes the [exchange-traded products] more expensive,” noted SEC commissioner Mark Uyeda in a statement.

When the SEC first approved the listing of crypto ETFs, “it was disappointing” that it required these products to use a cash-only redemption structure — “a limitation that resulted in unnecessary costs and burdens,” Uyeda said.

Now, the SEC has approved in-kind creations and redemptions for crypto funds.

“In-kind creation and redemption provide flexibility and cost savings to ETP issuers, authorized participants, and investors, resulting in a more efficient…