Overview
- The SEC’s new orders, effective July 29, allow authorized participants to create and redeem spot Bitcoin and Ethereum ETF shares directly for the underlying tokens instead of cash.
- In-kind settlement aligns crypto ETFs with traditional commodity products, reducing transaction costs and improving tax efficiency for institutional investors.
- The Commission also approved mixed Bitcoin-Ether ETPs, listed and FLEX options on Bitcoin ETFs, and raised position limits on BTC options to 250,000 contracts to deepen market liquidity.
- Project Crypto, announced July 31 by Chair Paul Atkins, aims to modernize securities regulations and enable tokenized trading, custody, and fundraising on blockchain platforms.
- A dedicated task force led by Commissioner Hester Peirce will draft clear token classification standards, safe harbors for ICOs, airdrops, and network rewards, and pathways for on-chain market integration.