Altcoins News
By MikeT
1 / 15
What Are In-Kind Redemptions?. In-kind redemptions allow investors to exchange ETF shares directly for the assets held in the ETF…
2 / 15
Hong Kong Was First to Allow It. While the SEC is only now permitting in-kind redemptions, Hong Kong regulators had included it in…
3 / 15
Why the U.S. Delayed It. The SEC didn’t officially ban in-kind redemptions but pushed ETF providers to use only cash…
4 / 15
Hong Kong’s Clearer Approach. Hong Kong didn’t face the same policy confusion. By allowing in-kind redemptions from the…
5 / 15
One Complication: Tracking ETF Flows. There is one big challenge with in-kind redemptions — it makes tracking ETF inflows harder.
6 / 15
Conclusion. The SEC’s move to allow in-kind redemptions is a big step forward for crypto ETFs in the U.S.
7 / 15
The U.S. Securities and Exchange Commission (SEC) recently made headlines by allowing in-kind redemptions for Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs).
8 / 15
This update is seen as a step toward making crypto ETFs more efficient and cost-effective for large traders. However, this idea isn’t new in Asia.
9 / 15
In-kind redemptions allow investors to exchange ETF shares directly for the assets held in the ETF — in this case, Bitcoin or Ethereum — rather than receiving money.
10 / 15
While the SEC is only now permitting in-kind redemptions, Hong Kong regulators had included it in their crypto ETF rulebook from the start.
11 / 15
ETF providers had to work with licensed local crypto exchanges.
12 / 15
They also had to use approved crypto custody services to keep assets safe.
13 / 15
Unlike the U.S., there was no legal confusion in Hong Kong over whether Ethereum was a security. This made it easier for regulators to move forward without major legal debates.
14 / 15
The SEC didn’t officially ban in-kind redemptions but pushed ETF providers to use only cash redemptions in early filings. The main reasons were:
15 / 15
Concerns about safely transferring large amounts of crypto.
The Currency Analytics
Want the full story?