30.07.2025 01:23
The US Securities and Exchange Commission (SEC) has significantly altered the landscape of cryptocurrency exchange-traded products (ETPs) by approving in-kind creations and redemptions for Bitcoin and Ether ETPs. This landmark decision, announced via press release and social media, paves the way for wider public availability of these products on exchange platforms.
This new regulatory framework allows investors a seamless exchange between physical Bitcoin or Ether and ETF shares, a reciprocal arrangement previously unavailable. The SEC explicitly stated this aligns digital asset ETPs with the operational standards of traditional commodity ETPs, fostering a more equitable and consistent market for derivative-based investments. The resulting increased efficiency and reduced costs were highlighted by SEC Chairman Paul S. Atkins in a statement on X, emphasizing the positive impact on investors.
Echoing the Chairman’s sentiment, Jamie Selway, Director of the SEC’s Division of Trading and Markets, lauded the change as a boon for the burgeoning crypto ETP market. He emphasized the enhanced flexibility and potential cost reductions this operational shift provides. The move follows sustained pressure from major players like BlackRock, Fidelity, and Grayscale, who actively advocated for more conventional fund structures for their spot crypto ETF offerings.
This approval is not an isolated event. The SEC's actions extend beyond in-kind redemptions. Concurrently, they approved a novel trading model for spot Bitcoin ETF options, introducing FLEX options and customizable derivatives. This expansion of options increases market flexibility and caters to a broader spectrum of participant needs and strategies. Furthermore, the recent request for public comment on a Nasdaq filing concerning staking options for BlackRock's spot Ethereum ETF underscores a progressive approach by the SEC towards regulating potentially higher-risk crypto features. This overall shift reflects a broader trend towards increased regulatory clarity and acceptance within the cryptocurrency investment space.
