30.07.2025 08:13

The U.S. Securities and Exchange Commission (SEC) has significantly enhanced the operational framework for spot Bitcoin and Ethereum exchange-traded funds (ETFs), approving "in-kind" creation and redemption. This landmark decision, effective July 29th, represents a substantial improvement for the burgeoning crypto ETP market, bringing it into alignment with traditional commodity-based funds.

This "in-kind" mechanism allows for the direct exchange of Bitcoin or Ether for ETF shares, and vice versa, streamlining operations, lowering trading costs, and substantially improving tax efficiency for investors. This simplifies the process significantly, eliminating the need for intermediaries and reducing the complexities associated with traditional ETF trading.

The SEC's approval encompasses all major U.S. exchanges, including Nasdaq, NYSE Arca, and Cboe BZX, thereby impacting numerous prominent ETF providers such as BlackRock, Ark21, Fidelity, VanEck, and Franklin Templeton. SEC Chairman Paul S. Atkins publicly lauded the decision, highlighting its positive impact on investor costs and operational efficiency, creating a more robust and accessible market for all American investors.

Further bolstering the Bitcoin ETF market, the SEC also approved a significant increase in position limits for Bitcoin ETF options. This expansion to 250,000 contracts is designed to stimulate liquidity and enhance the overall functionality of the options market, making it more attractive to both institutional and individual investors. The introduction of FLEX options, offering customizable trading terms, adds another layer of sophistication and flexibility to Bitcoin ETF derivatives trading. These combined measures aim to foster a more dynamic and efficient ecosystem for Bitcoin-related investments.