Catenaa, Wednesday, July 23, 2025- Multiple issuers of Bitcoin and Ethereum exchange-traded funds submitted fresh amendments to the US Securities and Exchange Commission on Tuesday, seeking approval for in-kind redemptions.
This is a technical shift seen by analysts as a major regulatory breakthrough.
Firms including 21Shares, Fidelity, Franklin Templeton, Galaxy, VanEck, and WisdomTree filed revised proposals for their spot crypto ETFs, aiming to allow authorized participants such as large financial institutions to exchange ETF shares directly for underlying assets like Bitcoin and Ethereum.
The move follows remarks last month by SEC Commissioner Hester Peirce, who said that in-kind redemptions for crypto ETFs were “on the horizon.”
The shift is expected to make crypto ETFs more operationally efficient and bring them in line with traditional exchange-traded products. While retail investors won’t see significant changes, experts say the updates could boost liquidity and reduce tracking errors over time.
The SEC is also reportedly considering a streamlined approval framework for crypto ETFs, potentially shortening the lengthy 19b-4 process currently required for each listing.
The agency approved spot Bitcoin ETFs in January and spot Ethereum ETFs in July, with dozens of new proposals now pending.
