SEC Approves In-Kind Crypto ETF Redemptions — A Big Win for Institutions
The U.S. Securities and Exchange Commission has officially approved in-kind creation and redemption for Bitcoin and Ethereum ETFs—a major structural upgrade for crypto investment products.
This move allows ETF shares to be exchanged directly for the actual underlying assets (BTC or ETH) instead of cash. It's the same model used in traditional commodity ETFs, like gold, offering:
Lower fees
Better tracking accuracy
Higher institutional appeal
Experts say this change will attract large asset managers and boost ETF liquidity, removing a key barrier that limited institutional participation.
BlackRock, Fidelity, and other providers are already preparing to implement this model. Analysts view this as a sign of regulatory confidence in the crypto market and a major step toward integrating digital assets into traditional finance.
