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SEC Approves In‑Kind Redemptions for BTC & ETH ETFs

Authorized participants can now settle ETFs directly with crypto assets.
SEC Approves In‑Kind Redemptions for BTC & ETH ETFs
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The SEC just gave the green light for spot Bitcoin Bitcoin and Ethereum Ethereum ETFs to operate more like traditional commodity funds—allowing big investors to create and redeem shares using crypto itself instead of cash.

What’s the Scoop?

  • In-Kind Redemptions Approved: Spot BTC and ETH ETFs can now settle shares by moving real crypto instead of going through cash-only transactions.
  • Options Trading Expanded: The SEC raised trading limits on Bitcoin ETF options to 250,000 contracts, making it easier for institutions to manage risk or speculate.
  • Mixed Funds Allowed: ETFs that combine both Bitcoin and Ethereum are now officially permitted under the new framework.
  • Why It Matters: These changes are expected to lower costs, improve liquidity, and make it easier for big players to trade crypto ETFs without unnecessary conversions.

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