SEC Approves In-Kind Redemptions for Crypto ETFs

Krutika Adani

New SEC Ruling Boosts Crypto ETF Efficiency

For the first time, Bitcoin & Ethereum ETFs can now use in-kind redemptions—receiving crypto, not just cash.

What Is In-Kind Redemption?

ETFs swap shares for crypto instead of cash—reducing friction, increasing flexibility for issuers & market makers.

Tax Win for Institutional Investors

In-kind transfers let investors defer capital gains until they sell crypto, avoiding immediate tax hits.

ETPs Get Closer to Mainstream ETF Structure

SEC expands options, position limits & even approves a joint BTC-ETH ETP—ushering in broader adoption.

More Liquidity, Lower Costs Ahead?

Analysts say move will attract new institutions, shrink spreads, and fast-track ETF sector growth in crypto.