Bitcoin News Today: SEC Approves In-Kind Redemptions for Bitcoin and Ethereum ETPs

The U.S. Securities and Exchange Commission (SEC) has approved in-kind creation and redemption mechanisms for cryptocurrency exchange-traded products (ETPs), marking a significant development in the evolution of regulated crypto investment vehicles. This change allows authorized participants to exchange shares of Bitcoin and Ethereum ETPs directly for the underlying digital assets, instead of receiving cash. The move is expected to reduce transaction costs and enhance market efficiency [1].

SEC Chairman Paul Atkins described the change as part of a broader strategy to create a regulatory framework tailored for digital assets. Jamie Selway, director of the SEC’s Division of Trading and Markets, highlighted that the in-kind redemption option provides greater flexibility and cost savings for issuers, participants, and investors [1].

Previously, approved crypto ETFs operated under a cash-only redemption system. The shift reflects an evolving regulatory landscape, with SEC Commissioner Hester Peirce acknowledging the growing demand for in-kind redemptions during a recent conference. This regulatory development aligns with a broader policy shift toward the digital asset industry, supported by the Trump administration’s emphasis on crypto innovation and the recent passage of key legislative bills related to market structure and stablecoins [1].

The industry has responded positively to the news. US spot Bitcoin ETFs have seen a 12-day inflow streak totaling $6.6 billion, with combined holdings now exceeding 1.298 million BTC, valued at around $152.1 billion. Similarly, BlackRock’s iShares Ethereum ETF has accumulated over $10 billion in assets within 251 days [1]. The approval of in-kind redemptions is expected to further accelerate growth in the crypto ETF market and could signal the start of a new era of more efficient and investor-friendly crypto products.

Meanwhile, the Senate Agriculture Committee has delayed a hearing on Brian Quintenz’s nomination to chair the Commodity Futures Trading Commission (CFTC). The postponement came at the request of the White House just before lawmakers are set to go on their August recess. This is the second time the hearing has been postponed, following earlier attempts in July and August [1].

Committee Chair John Boozman and Ranking Member Amy Klobuchar confirmed the decision, though no new hearing date has been announced. A committee spokesperson indicated that the move was prompted by the White House, though no official explanation was provided. Quintenz, a former CFTC commissioner under Trump and originally nominated by President Obama, has faced questions over his financial disclosures and policy positions [1].

The delay adds uncertainty to the CFTC’s leadership structure at a critical moment, with key legislation on digital asset regulatory responsibilities expected to be taken up in September. Quintenz, seen as crypto-friendly, could influence the direction of future policy, especially as the SEC under the Trump administration has pursued a more lenient stance compared to the enforcement-focused approach under former Chair Gary Gensler [1].

The CFTC is currently facing a leadership gap, with three of its five commissioners having left their positions. Acting Chair Caroline Pham has indicated she would step down if Quintenz is confirmed, while other commissioners are expected to depart within the next few years. President Trump has yet to announce replacements for the remaining open seats, leaving the future of the agency in question [1].

Source: [1]SEC Approves In-Kind Redemptions for Crypto ETPs (https://coinpaper.com/10260/sec-approves-in-kind-redemptions-for-crypto-et-ps)