The SEC voted Tuesday to permit in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs, a significant shift from its previous cash-only approach.
The decision extends to ETFs from BlackRock, Ark21Shares, Fidelity, VanEck, and Franklin Templeton, with accelerated approvals granted to Nasdaq, NYSE Arca, and Cboe BZX.
Additionally, the SEC authorized:
- Listings for funds holding both Bitcoin and Ethereum
- Options trading on select Bitcoin ETPs
- Increased position limits
SEC Chairman Paul Atkins framed the move as part of a broader effort to tailor regulations for crypto markets, stating, “Investors will benefit from reduced costs and improved efficiency.”
The ruling resolves a long-standing industry dispute. Previously, the SEC mandated cash redemptions, forcing issuers to liquidate Bitcoin holdings before returning cash to investors—a process seen as cumbersome and costly.
