The U.S. Securities and Exchange Commission voted to approve orders permitting authorized participants in crypto asset exchange-traded products (ETPs) to create and redeem shares in-kind. The change allows spot bitcoin and spot ether ETPs to use in-kind creations and redemptions, moving away from the in-cash-only model applied to the Commission’s recently approved spot bitcoin and ether ETPs and aligning these products with other commodity-based ETPs. Further orders advanced other crypto-based product listings and derivatives, including exchange applications to list and trade an ETP holding a mix of spot bitcoin and spot ether, options on certain spot bitcoin ETPs, FLEX options on shares of certain BTC-based ETPs, and increased position limits for listed options on certain BTC ETPs up to the generic limits for options of 250,000 contracts. The Commission also issued two scheduling orders soliciting comments for and against the Division of Trading and Markets’ delegated approvals of a national securities exchange’s proposals to list and trade two large-cap crypto-based ETPs.
U.S. Securities & Exchange Commission 2025-07-29
U.S. Securities and Exchange Commission permits in-kind creations and redemptions for bitcoin and ether crypto ETPs
The U.S. Securities and Exchange Commission approved orders allowing authorized participants in crypto asset exchange-traded products (ETPs) to create and redeem shares in-kind, aligning spot bitcoin and ether ETPs with other commodity-based ETPs. Further orders advanced listings and derivatives for crypto-based products, including options and increased position limits for certain BTC ETPs. The Commission also scheduled comments on proposals to list and trade two large-cap crypto-based ETPs.