Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
SEC approves in-kind redemptions for spot Bitcoin and Ethereum ETFs, increases options limits

SEC approves in-kind redemptions for spot Bitcoin and Ethereum ETFs, increases options limits

The BlockThe Block2025/07/28 16:00
By:By Jason Shubnell and Sarah Wynn

Quick Take “Today’s approvals continue to build a rational regulatory framework for crypto, leading to a deeper and more dynamic market, which will benefit all American investors,” SEC Chairman Paul Atkins said. “This decision aligns with the standard practices for similar ETPs.”

SEC approves in-kind redemptions for spot Bitcoin and Ethereum ETFs, increases options limits image 0

The U.S. Securities and Exchange Commission on Tuesday voted to approve orders to permit in-kind creations and redemptions by authorized participants for crypto asset exchange-traded products. The SEC also said it voted to approve applications looking to list and trade a fund that holds both spot bitcoin and spot ETH, options on "certain spot bitcoin ETPs," and also ones with an increase in position limits.

The SEC then subsequently granted "accelerated approvals" to the Nasdaq Stock Market LLC, NYSE Arca, Inc., Cboe BZX Exchange to allow for in-kind creations and redemptions for several ETFs, including BlackRock's bitcoin ETF and Ethereum ETF. That list also includes ETFs from Ark21, Fidelity, VanEck, Franklin Templeton, among others.

"It's a new day at the SEC, and a key priority of my chairmanship is developing a fit-for-purpose regulatory framework for crypto asset markets,” SEC Chairman Paul Atkins said in a release. "Investors will benefit from these approvals, as they will make these products less costly and more efficient."

ETF issuers have been seeking in-kind redemptions for months, and SEC Commissioner Hester Peirce said in June that in-kind redemptions for crypto ETFs were "on the horizon." Ahead of the SEC's approvals  for spot bitcoin ETFs over a year ago, firms were hashing out  technical details over how the redemption process would work for such products. The SEC favored a cash model that required firms like BlackRock to move bitcoin out of storage, sell it right away, and then give the cash back to the investor.

"Today's approvals continue to build a rational regulatory framework for crypto, leading to a deeper and more dynamic market, which will benefit all American investors," Atkins said. "This decision aligns with the standard practices for similar ETPs."

The "authorized participants" mentioned in the release likely refer to major Wall Street firms and market makers — not retail traders — to trade in shares of their ETFs for the underlying asset.

"[T]he vast majority of people won't even see a difference because the products on the market now already trade extremely efficiently," Bloomberg Intelligence ETF analyst James Seyffart said earlier this month . "This will treat crypto ETPs the same as other ETPs are treated."

Seyffart said on Tuesday in a post on X that pending ETF proposals tracking other cryptocurrencies will probably allow in-kind.

"The coming approvals for alt coin ETFs likely going to allow in-kind from the get go," he said. 


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

The article analyzes the TGE performance of multiple blockchain projects, evaluating project performance using three dimensions: current price versus all-time high, time span, and liquidity-to-market cap ratio. Projects are then categorized into five grades: S, A, B, C, and D. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

MarsBit2025/11/28 16:26
2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

Russian households have invested 3.7 billion rubles in cryptocurrency derivatives, mainly dominated by a few large players. INTERPOL has listed cryptocurrency fraud as a global threat. Malicious Chrome extensions are stealing Solana funds. The UK has proposed new tax regulations for DeFi. Bitcoin surpasses $91,000. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.

MarsBit2025/11/28 16:26
Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

How much is ETH really worth? Hashed provides 10 different valuation methods in one go

After taking a weighted average, the fair price of ETH exceeds $4,700.

ForesightNews 速递2025/11/28 15:05
How much is ETH really worth? Hashed provides 10 different valuation methods in one go

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost

People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

深潮2025/11/28 14:53
Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost