SEC Greenlights In-Kind Transactions for Crypto ETFs
The U.S. Securities and Exchange Commission (SEC) on July 29 approved a change allowing Bitcoin and Ether ETFs to use in-kind share creation and redemption. This means funds can now directly swap ETF shares for the underlying crypto instead of cash. The SEC says this should cut costs and improve efficiency in the crypto ETF market. Such in-kind mechanisms are standard in mainstream ETFs, and analysts say the change could tighten trading spreads and draw new institutional money into digital asset funds. Bitcoin traded near $117K and Ethereum around $3.8K – both close to recent highs.
