SEC’s In-Kind ETF Green Light Could Turbocharge Pending XRP ETF Approvals: Bill Morgan

The SEC's nod to in-kind ETFs might just be the catalyst XRP needs—finally dragging crypto into Wall Street's playground. Here's why the regulator's latest move could fast-track XRP's ETF dreams.

Subheader: A Regulatory Domino Effect

In-kind ETFs bypass cash settlements, slashing operational friction. If the SEC's warming to this model, XRP filings—languishing in bureaucratic purgatory—might suddenly look a lot sexier to approval committees.

Subheader: The XRP Wildcard

Ripple's legal wins already set precedent. Now, with in-kind ETFs breaking inertia, XRP's path clears further. TradFi's about to learn crypto doesn't need permission—just a regulatory loophole wide enough to drive a blockchain through.

Closer: Watch the SEC's next move. If they approve in-kind crypto ETFs while sitting on XRP filings? That's not oversight—that's Wall Street's 'not invented here' syndrome on full display.

TLDR

• The SEC has officially approved in-kind creation and redemption for crypto exchange-traded products (ETPs).
• This decision allows authorized participants to exchange crypto assets directly instead of using cash.
• The approved mechanism currently applies to existing Bitcoin and Ethereum ETFs listed on major U.S. exchanges.
• XRP ETF applications may benefit from the new structure, especially since XRP has already secured legal clarity.
• Attorney Bill Morgan described the change as a significant development for the future of XRP ETF approvals.

The U.S. Securities and Exchange Commission (SEC) has approved in-kind creation and redemption for crypto ETPs, changing ETF operations. This decision allows authorized participants to exchange crypto assets directly, reducing dependency on cash transactions. The move signals a regulatory shift that could support pending XRP ETF applications awaiting review.

Bitcoin and Ethereum ETFs Gain Operational Flexibility

The SEC’s decision covers existing Bitcoin and ethereum ETFs listed on Nasdaq, NYSE, and CBOE. By approving in-kind processes, the Commission enables fund managers to handle asset creation more efficiently. This reduces trading costs and minimizes market disruption during large inflows or outflows.

Chairman Paul Atkins emphasized the change as part of a broader regulatory structure for digital assets. The model mirrors commodity ETFs like gold, ensuring structural consistency across asset types. These steps suggest a shift away from restrictive frameworks set by the previous administration.

Additionally, the SEC has approved new options and increased position limits on Bitcoin-based ETFs. The Commission also permitted mixed spot Bitcoin and Ethereum ETPs, expanding product diversity. These adjustments confirm a more open regulatory stance under current leadership.

XRP ETF Applications Could Benefit From Structural Reform

Attorney Bill Morgan called the approval of in-kind mechanisms a significant step for crypto-based ETFs, especially for XRP ETF proposals. With XRP having legal clarity, in-kind creation could streamline fund operations and reduce cost inefficiencies. The SEC has not yet approved any XRP ETF, but this framework offers a favorable setup.

Massive. In-kind creations and redemptions for crypto ETFs.

And with several XRP ETFs waiting approval this is more good news for the Crypto markets https://t.co/TXzwpMbKVR

— bill morgan (@Belisarius2020) July 29, 2025

Several XRP ETF applications remain under SEC review, though no final decisions have been made. The Commission continues to evaluate these filings despite missing earlier deadlines. Analysts expect the SEC to issue a verdict on XRP ETF applications by October.

SEC Commissioner Hester Peirce acknowledged the delays but said the review process remains detailed and consistent with regulatory standards. The SEC has neither rejected nor accepted the pending XRP ETF proposals, suggesting that the possibility of future approvals remains active.

New Crypto Framework Aligns With Market Structure Goals

Under Chairman Atkins, the SEC has adopted a merit-neutral stance toward crypto products. Jamie Selway, Director of Trading and Markets, confirmed that this policy promotes efficiency across digital asset markets. This direction reflects a strategic departure from the agency’s previous approach under Chairman Gary Gensler.

The XRP ETF framework now shares operational features with approved Bitcoin and Ethereum ETFs. That alignment helps strengthen XRP ETF proposals as they follow already accepted structures. This new clarity supports a growing path for altcoin ETF development.