Commissioner Mark T. Uyeda issued a statement following the U.S. Securities and Exchange Commission’s order approving in-kind creations and redemptions for crypto asset exchange-traded products (ETPs), allowing these products to move away from a cash-only redemption structure. The statement contrasts the new approach with the cash-only model described in the Commission’s January 2024 approval of listing rules for spot crypto ETPs, under which authorized participants redeemed ETP shares for USD and issuers then bought or sold the crypto asset on the open market. Uyeda argued that this structure imposed transaction costs, exposed investors to price slippage, and made crypto ETPs more expensive than comparable commodity ETPs, while the in-kind model should eliminate related market asymmetries and allow crypto ETPs to use creation and redemption processes aligned with other ETP markets.
U.S. Securities & Exchange Commission 2025-07-29
U.S. Securities and Exchange Commission approves in-kind creations and redemptions for crypto exchange-traded products
The U.S. Securities and Exchange Commission approved in-kind creations and redemptions for crypto asset exchange-traded products (ETPs), moving away from a cash-only redemption structure. Commissioner Mark T. Uyeda highlighted that the in-kind model should reduce transaction costs and price slippage, aligning crypto ETPs with other ETP markets and addressing market asymmetries.