SEC’s Hester Peirce Says In-Kind Crypto ETF Redemptions Could Come Soon - Unchained

robot
Abstract generation in progress

SEC Commissioner Hester Peirce, who also heads up the agency’s Crypto Task Force, signaled that in-kind redemptions for crypto exchange-traded funds (ETFs) are “on the horizon” and could soon become a reality.

“I can’t prejudge, but we hear that there’s a lot of interest,” she added.

In-kind redemptions allow investors to exchange ETF shares directly for the underlying asset rather than receiving cash, which is the current standard for spot crypto ETFs approved by the SEC in early 2024.


This story is an excerpt from the Unchained Daily newsletter.

Subscribe here to get these updates in your email for free


Peirce made these remarks while speaking on a panel at the Bitcoin Policy Institute, noting that multiple filings requesting in-kind creation and redemption mechanisms — such as those submitted by Nasdaq on behalf of BlackRock in January 2025 — are currently under review by the SEC.

A shift to in-kind redemptions is expected to reduce operational friction, lower tax implications, and improve the efficiency of crypto ETFs, making them more attractive to institutional investors and aligning their structure with traditional equity ETFs.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)