Yesterday, the U.S. Securities and Exchange Commission (SEC) approved the creation and redemption of shares in Bitcoin and Ethereum ETFs in “in-kind” form, meaning investors can directly exchange cryptocurrencies for ETF shares and vice versa, without the need for cash settlements. The decision took effect following a vote on July 29, 2025.
This change—aligned with the standard model used in commodity-based ETFs—is designed to improve capital efficiency, reduce tax burdens for institutional investors, narrow bid-ask spreads, and deepen liquidity in the crypto market.
It marks a breakthrough in how crypto ETFs function, bringing them closer to traditional ETFs. Analysts expect this to attract new institutional capital and pave the way for additional products based on altcoins like Solana or Cardano, which could be structured from the outset with in-kind settlement capabilities.
Ethereum Outpaces Bitcoin: Capital Inflows and Price Surge
In recent weeks, Ethereum has gained traction and is now rivaling Bitcoin in popularity. Institutional adoption is accelerating, with public companies like BitMine Immersion and SharpLink allocating significant funds to purchase ETH.
Combined with record ETF inflows, rising interest in staking, and a favorable regulatory environment, Ethereum's clear momentum is reflected in its rapidly increasing valuation. Since the beginning of July, ETH has surged 55% to $3,822, still trading below its all-time high above $4,800.
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