Major news about the approval of digital currency ETF funds
1. Approval of 'In-Kind' creations and redemptions for crypto ETP funds
On July 29, 2025, the SEC decided to allow accredited participants to conduct creations and redemptions of cryptocurrency ETP funds, such as Bitcoin and Ethereum, using the assets themselves (in-kind) instead of cash only.
This change makes the funds more cost-efficient, reduces pricing gaps, and improves price discovery in the market.
This comes as a step aimed at improving the regulatory framework for digital assets, reflecting a 'new day at the SEC', according to the words of the agency's chairman.
2. Issuance of the first comprehensive guidance on the approval process for crypto ETF funds
On July 1, 2025, the SEC's finance department issued a framework for the first time that outlines the basic disclosure requirements in requests for crypto ETP funds, although this does not guarantee immediate approval.
These requirements include details about the included assets, custody and storage mechanisms, market and operational risks, and others.
According to informed sources, the authority is also working to unify the regulatory process for launching such funds to reduce the time required from 240 days to about 75 days.
3. Ambiguous delay in the conversion of the Bitwise fund to an ETF
In a notable development, the SEC briefly approved — but then immediately halted — the conversion of the Bitwise 10 Crypto Index Fund to an ETF, putting the process on temporary hold pending further review by the agency.
This halt occurred after it was executed by an 'accelerated decision' from the trading department, but it was arbitrarily placed under 'suspension until further notice'.
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Latest developments in this context
‣ 'Crypto Blue Chip ETF' file from Trump Media (September 2025)
Trump Media & Technology Group — linked to the Truth Social platform — announced it has filed a request with the SEC to create a new ETF fund named 'Crypto Blue Chip ETF', which includes:
70% Bitcoin
15% Ethereum
8% Solana
5% Ripple (XRP)
2% Crypto.com token
This comes in the context of increasing regulatory support for cryptocurrencies from the current administration.
‣ Increase in demand for new crypto ETFs
The year 2025 began with an increasing trend towards launching new ETF products that include diverse indices and currencies such as Solana and XRP, in addition to options to protect investors from declines in Bitcoin prices.
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Historical overview in the context of the development of crypto ETF funds
January 2024: The SEC approved for the first time 11 spot Bitcoin ETFs.
May 2024: Approval of eight ETH ETFs.
Benefits of crypto funds: They provide organized and easy ways to access cryptocurrencies without the need to manage them directly; however, they carry risks such as price volatility and higher costs.
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Summary
Latest developments: SEC facilitates the use of 'in-kind' assets for the establishment and redemption of crypto ETF funds in July 2025, and issues a clear framework for regulating approval requests.
Major events: Delay in converting the Bitwise fund to an ETF, and a request to create the Crypto Blue Chip fund from Trump Media.
What's coming? The possibility of establishing unified regulatory standards to accelerate the launch of a variety of crypto funds, including multi-asset funds.
