SEC’s Shocking Approval: In-Kind ETFs for Bitcoin and Ethereum – What’s Next?

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In a move that has left many scratching their heads and others doing a little happy dance, the SEC has given the thumbs up to in-kind ETFs for Bitcoin and Ethereum. And if that wasn’t enough to make your crypto-loving heart skip a beat, they’ve also introduced a speedy approval process for future altcoin products. It’s like Christmas came early for the market sector! 🎉

But wait, there’s more! The Commission has decided to crank up the position limit on IBIT options trading by a whopping tenfold. Yes, you heard that right—tenfold! This could lead to what some are calling “an explosion of option-based Bitcoin ETFs.” I can almost hear the cash registers ringing! 💰

In-Kind ETFs Win Approval

Ever since President Trump took office, the U.S. has been swept up in a tidal wave of pro-crypto regulations. But one particular demand has been gaining traction faster than a cat meme goes viral: in-kind ETFs. Today, the SEC finally announced its final approval of this request, and Chairman Paul Atkins was positively beaming in his statement.

I’m pleased to share the SEC approved in-kind creations and redemptions for crypto ETPs. The approvals continue to build a rational regulatory framework for crypto, leading to a deeper and more dynamic market, which will benefit all American investors.

— Paul Atkins (@SECPaulSAtkins) July 29, 2025

Now, you might be wondering, what on earth is an in-kind crypto ETF? When the first Bitcoin ETFs were given the green light under Gary Gensler, he was determined to keep these new products away from any shady BTC sources. Think of it as a bouncer at a club, checking IDs before letting anyone in.

This meant that each issuer had to buy the assets, and then investors would waltz in and purchase the financial instruments. But with the in-kind model, buyers can simply bring their relevant tokens to an issuer and get the products directly. It’s like trading Pokémon cards, but with a lot more zeros involved. 🤑

And yes, while investors still need to do business through licensed issuers, these issuers don’t have to buy all the tokens themselves. It’s a win-win situation, really. In-kind crypto ETFs are set to remove yet another legal hurdle for Web3. Cryptoassets are theoretically treated like commodities, but most commodities have this in-kind functionality. Who knew crypto could be so… practical?

“This is huge.. and will create explosion of option based bitcoin ETFs.”

— Eric Balchunas (@EricBalchunas) July 29, 2025

In summary, the SEC is clearly on board with the crypto ETF liberalization train, despite some recent approval delays. In-kind creation and redemption will elevate these products to the same level as any other commodity-based product. Crypto ETF trade volumes are already soaring, but these new measures could send the momentum into the stratosphere. Buckle up, folks! 🚀

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2025-07-30 02:57