SEC Approves In-Kind Transactions for Crypto ETPs, Boosting Institutional Access and Market Efficiency
The U.S. Securities and Exchange Commission (SEC) has approved the use of in-kind transactions for crypto exchange-traded products (ETPs), a regulatory shift that could reshape the structure of digital asset markets. The decision enables institutional and accredited investors to directly deposit or redeem crypto assets such as Bitcoin and Ethereum into or out of ETPs, bypassing traditional cash-based settlements. This development, which applies retroactively to existing ETPs and forward to new filings, aims to enhance liquidity, lower transaction costs, and improve operational efficiency for market participants [1].
The move aligns with the SEC’s recent greenlighting of spot Bitcoin ETFs, signaling a broader acceptance of crypto…
