When will US SEC approve in-kind crypto ETF redemptions?

In-kind redemptions may revolutionize crypto ETF investments by allowing direct swaps of Bitcoin or Ethereum for ETF shares, improving transaction speeds, accuracy, and reducing tax implications.

As of now, the SEC has yet to approve any applications for in-kind redemptions in crypto ETFs, with significant plans from BlackRock and Grayscale awaiting decisions by mid-2025.

Analysts including James Seyffart express optimism, predicting approval for in-kind redemptions due to recent market developments and growing institutional interest, indicating a favorable shift is likely.