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

The U.S. Securities and Exchange Commission (SEC) has finalized new listing standards for cryptocurrency-based exchange-traded products (ETPs), enabling in-kind creation and redemption processes for the first time [1][2]. This development, announced in late July 2025, marks a significant regulatory evolution, allowing authorized participants to use Bitcoin (BTC) or Ethereum (ETH) directly to create or redeem ETP shares, instead of relying solely on cash transactions [3][4]. The revised framework is expected to improve market efficiency, reduce transaction costs, and bring crypto ETPs more in line with traditional equity and commodity ETF structures [5].

The shift from a cash-only model to an in-kind mechanism addresses prior inefficiencies in arbitrage and liquidity, enhancing the functionality of crypto ETPs as investment vehicles [6]. Industry analysts and regulators have emphasized that this change could attract institutional investors, who often require lower cost structures and greater liquidity to engage with the market [7]. The SEC also established standardized listing criteria for crypto ETPs, streamlining the process for firms to list products that meet the new regulatory guidelines [8].

Coinbase has emerged as a key platform under the new rules, as the only U.S.-based exchange supporting compliant perpetual-style crypto futures [2]. The updated framework could accelerate the approval of crypto ETFs for qualifying tokens, particularly Bitcoin and Ethereum, which have already met the stated criteria [1]. Market observers note that this regulatory development signals a more mature and structured approach to crypto markets, with broader implications for product diversity and institutional adoption [9].

Cboe, a major exchange operator, has filed to auto-list crypto ETFs that comply with the SEC’s new standards, potentially reducing the need for individual regulatory reviews and accelerating product launches [10]. This move is expected to create a more dynamic and competitive ETP market, as firms race to offer products that align with the updated framework [11]. Analysts highlight that the transition from cash-only to in-kind mechanisms is a technical yet impactful change, with long-term effects on ETP pricing and liquidity [6].

The regulatory shift has been widely welcomed as a step toward mainstream adoption of digital assets. The SEC’s approach does not fully deregulate the crypto sector but reflects a more accommodating stance, which could pave the way for further innovation and investment. As market participants monitor the rollout of new products, the broader financial ecosystem is now positioned to better integrate crypto as a legitimate asset class.

Source:

[1] CoinDesk – [https://www.coindesk.com/markets/2025/07/29/sec-approves-in-kind-redemptions-for-all-spot-bitcoin-ethereum-etfs](https://www.coindesk.com/markets/2025/07/29/sec-approves-in-kind-redemptions-for-all-spot-bitcoin-ethereum-etfs)

[2] Bloomberg – [https://www.bloomberg.com/news/articles/2025-07-29/a-quiet-sec-rule-shift-brings-crypto-etfs-closer-to-mainstream](https://www.bloomberg.com/news/articles/2025-07-29/a-quiet-sec-rule-shift-brings-crypto-etfs-closer-to-mainstream)

[3] Funds Society – [https://www.fundssociety.com/en/news/etf/the-sec-gives-new-boost-to-the-crypto-market-by-approving-in-kind-redemptions-for-etps/](https://www.fundssociety.com/en/news/etf/the-sec-gives-new-boost-to-the-crypto-market-by-approving-in-kind-redemptions-for-etps/)

[4] AInvest – [https://www.ainvest.com/news/bitcoin-news-today-sec-unveils-crypto-etp-listing-standards-kind-redemption-rules-2507/](https://www.ainvest.com/news/bitcoin-news-today-sec-unveils-crypto-etp-listing-standards-kind-redemption-rules-2507/)

[5] Mitrade – [https://www.mitrade.com/insights/news/live-news/article-3-999429-20250731](https://www.mitrade.com/insights/news/live-news/article-3-999429-20250731)

[6] Bitbo – [https://bitbo.io/news/sec-approves-in-kind-etfs/](https://bitbo.io/news/sec-approves-in-kind-etfs/)

[7] Investment Executive – [https://www.investmentexecutive.com/news/from-the-regulators/crypto-etfs-get-relief-from-sec/](https://www.investmentexecutive.com/news/from-the-regulators/crypto-etfs-get-relief-from-sec/)

[8] gtLaw – [https://www.gtlaw-financialservicesobserver.com/2025/07/sec-approves-in-kind-creations-and-redemptions-for-crypto-etps/](https://www.gtlaw-financialservicesobserver.com/2025/07/sec-approves-in-kind-creations-and-redemptions-for-crypto-etps/)

[9] Medium – [https://medium.com/@carlosdesantiago/crypto-just-got-institutional-sec-eliminates-key-etf-friction-7c586886f0ee](https://medium.com/@carlosdesantiago/crypto-just-got-institutional-sec-eliminates-key-etf-friction-7c586886f0ee)

[10] Crypto Briefing – [https://cryptobriefing.com/automatic-crypto-etf-listing-cboe/](https://cryptobriefing.com/automatic-crypto-etf-listing-cboe/)