Future

Cryptocurrency

Read

Rewards

<div class="key-points-section"><strong>What to Know:</strong>
 <ul>
  <li>SEC approves in-kind redemptions for crypto ETPs, increasing efficiency.</li>
  <li>Retail staking rewards remain restricted for now.</li>
  <li>BTC, ETH, SOL ETPs included, similar to commodity markets.</li>
 </ul>
</div>
<p>On July 29, 2025, the U.S. SEC approved in-kind creations and redemptions for crypto ETPs, enhancing efficiency but not permitting staking rewards for retail investors.</p>
<p>This move aims to reduce costs and improve market efficiency for crypto ETPs, but direct reward-sharing with investors remains outside current regulatory allowances.</p>
<h2 id="sec-greenlights-in-kind-redemption-for-crypto-etps">SEC Greenlights In-Kind Redemption for Crypto ETPs</h2>
<p>The <a href="https://www.sec.gov/newsroom/press-releases/2025-101-sec-permits-kind-creations-redemptions-crypto-etps" rel="noopener noreferrer nofollow">U.S. Securities and Exchange Commission</a> has <strong>approved in-kind redemptions</strong> for crypto ETPs as of July 29, 2025. This change intends to improve market functions and reduce costs.</p>
<p>The decision affects major assets like <strong>Bitcoin, Ethereum, and Solana</strong>. <strong>U.S.-based crypto ETPs</strong> have now gained parity with commodity ETPs through this regulatory update.</p>
<h2 id="investors-to-benefit-from-lower-transaction-costs">Investors to Benefit from Lower Transaction Costs</h2>
<p><strong>Investors may benefit</strong> from lower transaction costs and greater market efficiency. <strong>SEC officials</strong> assert these improvements will lead to broader market dynamics.</p>
<p>Despite the changes, <a href="https://www.sec.gov/newsroom/press-releases/2025-121-sec-approves-generic-listing-standards-commodity-based-trust-shares" rel="noopener noreferrer nofollow">crypto ETPs still cannot share staking rewards</a> with retail investors. <strong>Market experts</strong> indicate this may be a future consideration as the regulatory framework evolves.</p>
<h2 id="no-precedent-for-retail-staking-rewards-yet">No Precedent for Retail Staking Rewards Yet</h2>
<p>In the past, <strong>spot BTC and ETH ETPs</strong> required cash-only mechanisms, leading to inefficiencies. The <strong>new in-kind order</strong> now aligns with practices in the commodity ETP sphere. Paul S. Atkins, Chairman, SEC, remarked, “It’s a new day at the SEC, and a key priority of my chairmanship is developing a fit-for-purpose regulatory framework for crypto asset markets. I am pleased the Commission approved these orders permitting in-kind creations and redemptions for a host of crypto asset ETPs. Investors will benefit from these approvals, as they will make these products less costly and more efficient.”</p>
<p>While the regulatory landscape is evolving, there is <strong>no precedent for retail staking rewards via ETPs</strong> in the U.S. Future decisions could impact this capability depending on SEC directives.</p>
<figure class="wp-block-table">
 <table class="has-fixed-layout">
  <tbody>
   <tr>
    <td><em><strong>Disclaimer</strong>: The information on this <a href="https://bitcoininfonews.com/" rel="noopener noreferrer nofollow">website</a> is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.</em></td>
   </tr>
  </tbody>
 </table>
</figure> <a href="https://bitcoininfonews.com/sec-approval-crypto-etps-redeem/" rel="noopener noreferrer nofollow">Read original article on bitcoininfonews.com</a>

SEC Approves In-Kind Redemption for Crypto ETPs

Table of Contents

BitcoinInfoNews.Com

Other articles published on Nov 11, 2025

Join our free newsletter for daily crypto updates!