30.07.2025 04:18
The United States Securities and Exchange Commission (SEC) has significantly altered the landscape of cryptocurrency exchange-traded products (ETPs) by approving in-kind creation and redemption of crypto assets. This decision, announced on July 29th, marks a departure from the previous 19-month practice of exclusively cash-based creation and redemption, a limitation imposed since the approval of the first spot Bitcoin ETF.
This landmark approval paves the way for seamless integration between spot Bitcoin and Ethereum ETFs and traditional stock markets. The once-separate crypto and stock markets will now enjoy greater interoperability, potentially fostering increased liquidity and market efficiency. SEC Chairman Paul S. Atkins hailed the decision as a significant step forward, emphasizing a commitment to creating a modern and effective regulatory framework for crypto asset markets, ultimately benefiting investors through reduced costs and improved efficiency. His statement highlighted the positive impact on investor access and the overall market functionality.
This move represents a pivotal moment for the mainstream adoption of digital assets. The substantial influx of capital into U.S. spot Bitcoin ETFs, totaling approximately $54.9 billion in net inflows and holding around $153 billion in total net assets, as per on-chain data analysis from SoSoVaLue, showcases the existing market appetite. Similarly, U.S. spot Ether ETFs, spearheaded by BlackRock's ETHA, have seen impressive cumulative net inflows of around $9.4 billion, boasting a total net asset value of roughly $21.5 billion.
The newly approved in-kind creation and redemption mechanisms are expected to accelerate the growth of U.S. spot Bitcoin and Ethereum ETFs, potentially propelling their combined market capitalization towards the trillion-dollar mark in the near future. This anticipated surge in investment is poised to inject substantial capital into the broader cryptocurrency ecosystem, originating from the well-established traditional stock market. The implications of this regulatory shift extend far beyond individual investments, promising a deeper and more integrated relationship between traditional finance and the cryptocurrency world.
