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major impact
Finance
Investments

SEC Permits In-Kind Redemptions for Crypto Asset ETPs

Securities and Exchange Commission
United States
Published Jul 29, 2025

Summary

The SEC voted to permit in-kind creations and redemptions by authorized participants for cryptoasset exchange-traded product (ETP) shares, which were previously limited to an in-cash basis. This significant policy shift allows for more efficient ETP operations and reduces transaction costs for investors in cryptocurrency ETPs.

Key Changes

  • In-kind creation and redemption now permitted for crypto ETPs
  • Authorized participants can exchange underlying crypto assets directly
  • Reduced operational costs for ETP sponsors

Affected Industries

Asset Management
Cryptocurrency
Exchange-Traded Funds

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