US Accelerates Crypto ETF Adoption with Strategic Moves

Five major issuers have submitted updated applications to the SEC, seeking to integrate in-kind creation and redemption features into their cryptocurrency ETFs. This structural shift aims to mirror traditional ETF efficiency, reducing costs and improving liquidity for digital asset investors.

In-kind mechanisms allow direct asset exchanges rather than cash transactions—a proven model in conventional finance now poised to transform crypto markets. Analysts highlight potential tax advantages and operational ease, though regulatory approval remains pending.

The SEC's cautious stance persists despite industry momentum. As James Seyffart notes, these filings represent critical infrastructure evolution for institutional crypto participation, though timing for greenlights stays uncertain.