SEC Clears In-Kind Redemptions—A Win for Bitcoin and Ethereum ETF Investors

Reading Time: < 1 minute

In a major move for crypto markets, the SEC has approved in-kind redemptions for spot Bitcoin and Ethereum ETFs, paving the way for lower costs and greater efficiency.

The decision allows authorized participants to create and redeem shares using crypto assets rather than cash—a process long sought by issuers like BlackRock, Fidelity, and Ark21Shares. The SEC also approved listings for combined Bitcoin-Ethereum funds and options on Bitcoin ETPs.

“This is a new day at the SEC,” said Chairman Paul Atkins, emphasizing the agency’s commitment to a “fit-for-purpose” crypto framework. The shift marks a reversal from the SEC’s earlier insistence on cash redemptions, which forced issuers to sell Bitcoin before distributing proceeds.

With accelerated approvals for Nasdaq, NYSE Arca, and Cboe BZX, the ruling could drive further institutional adoption. Commissioner Hester Peirce had foreshadowed the move in June, calling in-kind redemptions “on the horizon.”