SEC Approves In-Kind Redemptions For BTC And ETH ETFs

The US Securities and Exchange Commission (SEC) has approved in-kind redemptions for spot Bitcoin and Ethereum ETFs, marking the agency’s first major crypto policy shift under new Chair Paul Atkins.

When the funds were approved last year, it was on an in-cash basis, meaning shares had to be redeemed for cash. This incurred an extra fee because the underlying assets had to be sold first.

With the recent move by the SEC, authorized representatives, such as Goldman Sachs and JP Morgan, have the ability to swap shares directly for the underlying assets and vice versa.

“Investors will benefit from these approvals, as they will make these products less costly and more efficient,” said SEC Chair Paul Atkins in a July 29 statement.

Atkins Aims To Develop “Fit-For-Purpose” Crypto Regulatory Framework

Since Donald Trump entered the White House for a second term and Atkins was named as the new Chair of the SEC, there has been a noticeable pivot in crypto stance away from the anit-crypto positioning under the Gary Gensler regime.

Atkins said in the announcement that a “key priority” for him while he’s the SEC Chair is to develop a clear regulatory framework for digital assets that is “fit-for-purpose.” 

The approval of in-kind redemptions comes after the US Congress passed three key crypto bills earlier this month. One of them, the GENIUS Act, was also signed into law by Trump.

The SEC’s move also comes amid growing demand for spot crypto ETFs. US spot Bitcoin ETFs alone recently recorded a 12-day inflow streak, with $6.6 billion entering the funds during this period. 

Meanwhile, spot ETH ETFs are currently on a $5.4-billion, 18-day inflow streak.

Make that 18 straight days of inflows for spot eth ETFs…

$5.4bil in new $$$.

Now tied for 2nd best inflow streak since launch.

Will look to tie record 19-day inflow streak tomorrow.

This current streak has blown away the *combined* total $$$ from those two previous streaks.

— Nate Geraci (@NateGeraci) July 30, 2025

SEC Approves Other ETF Orders

In addition to the in-kind redemptions, the SEC also approved several other orders for crypto-based products.

Those include exchange applications seeking to list and trade a combined BTC and ETH product, options on certain spot Bitcoin products, Flexible Exchange (FLEX) options on shares of certain Bitcoin-based products, as well as an increase of position limits up to the generic limits for options, the announcement added.  

An issuer just wrote me: “This is huge.. and will create explosion of option based bitcoin ETFs.” https://t.co/z3UtoGucgd

— Eric Balchunas (@EricBalchunas) July 29, 2025

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