SEC Greenlights In-Kind Creations for Bitcoin & Ethereum ETFs—Boosting Crypto Market Efficiency
🔑 Key Takeaways The U.S. SEC now allows in-kind creation and redemption for spot Bitcoin and Ethereum ETFs—similar to commodity ETPs. Authorized participants can exchange actual BTC/ETH for ETF shares, bypassing cash conversions and enhancing liquidity. The move signals regulatory maturation, aligning crypto ETFs with mainstream financial product standards. 🗞 Main Story The U.S. Securities and Exchange Commission (SEC) has taken a decisive step toward legitimizing crypto ETFs by approving in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs. Previously, authorized participants (APs) had to convert crypto into cash before ETF shares could be issued or redeemed. Now, under the new model, APs can deliver or receive the underlying asset directly—actual Bitcoin or Ethereum. This shift may appear technical, but it represents a milestone in the integration of crypto with traditional markets . First, it reduces transaction costs...