Securities and Exchange Commission Approves In-Kind Crypto ETP Tr
On July 29, 2025, the U.S. Securities and Exchange Commission (SEC) voted to approve orders allowing in-kind creations and redemptions for crypto asset exchange-traded products (ETPs), including those based on bitcoin and ether. This marks a significant shift from the SEC’s earlier stance, which had limited spot crypto ETPs to cash-only transactions.
Under the newly approved framework, authorized participants can now exchange crypto assets directly for ETP shares, bypassing the need to convert to U.S. dollars. This change aligns crypto ETPs with standard practices for commodity-based ETPs and was approved with an aim to reduce transaction costs, minimize price slippage, and improve overall market efficiency.
SEC Chairman Paul S….
