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ARTICLE · 12 AUGUST 2025

SEC Approves In-Kind Creation And Redemption For Crypto Exchange-Traded Products

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The US Securities and Exchange Commission (SEC) approved the use of in-kind creation and redemption mechanisms for cryptocurrency exchange-traded product (ETP) shares on July 29.

United StatesTechnology
James Brady
James Brady
Michael Didiuk
Michael Didiuk
Susan Light
Susan Light
Richard Marshall
Richard Marshall
Nicholas Gervasi
Nicholas Gervasi
Alexander C. Kim
Alexander C. Kim
Eli Krasnow
Eli Krasnow
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The US Securities and Exchange Commission (SEC) approved the use of in-kind creation and redemption mechanisms for cryptocurrency exchange-traded product (ETP) shares on July 29.1 This move aligns crypto-based ETPs with long-established practices for traditional commodity and equity ETPs.

What Are Crypto ETPs?

ETPs are investment vehicles that track the performance of an underlying asset or index, and are traded on public exchanges.2 In the context of digital assets, ETPs allow investors to gain exposure to cryptocurrencies such as Bitcoin or Ethereum in a more secure, regulated and brokerage-compatible format — without public investors needing to buy, custody or manage the cryptoassets directly.

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