1. Allowing in-kind creations and redemptions.
On July 29, 2025, the U.S. Securities and Exchange Commission (SEC) issued a decision allowing Authorized Participants to execute creations and redemptions using the same digital currencies (Bitcoin or Ethereum), instead of just cash transactions.
This amendment allows crypto index funds to operate similarly to traditional commodity funds, reducing costs and improving operational efficiency.
2. New disclosure guidelines.
In early July 2025, the SEC issued a 12-page guidance document outlining a framework for disclosures related to the issuance and industry of crypto index funds:
Custody details, NAV valuation mechanisms, risks, conflicts of interest, governance, and more.
The goal is to enhance transparency and expedite regulatory acceptance and approval reviews.
The SEC is also discussing a framework for an alternative public disclosure template for individual applications (Form 19b-4), which could reduce the approval time from 240 to 75 days.
3. Diversifying crypto index products (commitments and liquidity).
Request from the SEC to make amendments to applications related to index funds based on assets like Solana, to include models such as 'staking' for rewards.
Models like REX-Osprey Sol + Staking ETF have begun to operate as an alternative structure providing yield exposure through staking without waiting for approval within the United States.
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⚙️ What is the practical impact of these changes?
Reducing costs and improving efficiency: In-kind creation and redemption processes help reduce price gaps and lower fees.
Accelerating launch for companies and institutions: With the new disclosure and declaration model, approvals become faster and more flexible.
Opening the gateway for differential funds (altcoin ETFs): Expectations of ETFs tracking assets like Solana, XRP, Litecoin soon.
Increasing transparency and protecting investors through detailed disclosure of risks and regulatory policies.
