The U.S. SEC has approved in-kind creation and redemption for Bitcoin and Ether ETPs.
Key Takeaways
Lower costs, more efficiency: SEC Chair Paul Atkins says the change will make crypto ETPs “less costly and more efficient.”
Part of broader policy shift: Decision aligns with pro-crypto momentum under the Trump administration and recent Congressional legislation.
A Milestone for Crypto ETFs
The U.S. Securities and Exchange Commission (SEC) has officially approved in-kind creation and redemption for cryptocurrency exchange-traded products (ETPs).
“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 Chair Paul Atkins said.
“In-kind creation and redemption provide flexibility and cost savings to ETP issuers, authorized participants, and investors,” added Jamie Selway, director of the SEC’s Division of Trading and Markets.
Regulatory Momentum and Policy Context
The approval marks another step in the SEC’s evolving stance toward digital assets.
Last month, SEC Commissioner Hester Peirce hinted at the change during the Bitcoin Policy Institute conference, noting the growing support for in-kind mechanisms.
The move follows a broader pro-crypto shift under the Trump administration, with Congress passing bills on crypto market structure, stablecoins, and blocking a surveillance-oriented CBDC earlier this month.
