Breaking: Bitcoin and Ethereum ETFs Get Green Light from SEC for In-Kind Redemptions

Jakarta, Pintu News – A recent announcement from the United States Securities and Exchange Commission (SEC) has brought a breath of fresh air to the crypto market. The SEC has approved the use of an in-kind model for Bitcoin (BTC) and Ethereum (ETH) ETFs, a move that is expected to deepen and expand the crypto market in the United States.

Check out the full information in this article!

Introduction of In-Kind ETFs for Bitcoin and Ethereum

The SEC recently announced approval for the creation and in-kind redemption of ETF products based on Bitcoin (BTC) and Ethereum (ETH). This decision allows authorized participants to conduct transactions directly with actual crypto assets, rather than just through cash.

This marks a significant change from the previous policy that required transactions to be conducted in cash. SEC Chairman, Paul S. Atkins, stated that this change aims to reduce costs and increase efficiency for investors as well as market participants.

With this new regulation, crypto-based ETFs are now governed by the same standards as other commodity-based products, such as gold.

Read also: Bill Miller: “Every Company Will Have Bitcoin in the Next 20 Years!”

Benefits and Impact of In-Kind ETFs

With the in-kind model, investors can bring the relevant crypto tokens to the issuer to obtain the product directly. This process, known as in-kind creation, also works the other way around for redemption.

This not only simplifies the transaction process, but also reduces the need for issuers to purchase tokens independently. In addition, the SEC has also approved an increase in the position limit for Bitcoin (BTC) ETF options from 25,000 contracts to 250,000 contracts.

This tenfold increase is expected to drive significant growth in the derivatives market for Bitcoin (BTC) based products.

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Future Prospects and Product Expansion

The SEC not only gave the green light to Bitcoin (BTC) and Ethereum (ETH), but also mentioned an expedited approval process, which might help with in-kind redemptions on altcoin products in the future.

Analyst from Bloomberg, James Seyffart, anticipates that future approvals for altcoin ETFs will also include in-kind provisions from the start.

This approval is expected to open up more market opportunities and strengthen the integration of crypto into regulated markets. It also marks the SEC’s commitment to adapting its regulatory framework to suit the dynamic crypto asset market.

Conclusion

The SEC’s decision to approve in-kind ETFs for Bitcoin (BTC) and Ethereum (ETH) marks an important step in the evolution of cryptoasset regulation. By adopting a model that allows for more efficient transactions and lower fees, the SEC is demonstrating its commitment to supporting the growth and widespread acceptance of blockchain technology and cryptoassets.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. SEC Approves In-Kind Redemptions in Bitcoin ETFs. Accessed on July 30, 2025
• BeInCrypto. SEC Grants Approval for Bitcoin and Ethereum In-Kind ETFs. Accessed on July 30, 2025
• Featured Image: Stormgain