Some large bitcoin holders are moving coins into spot exchange-traded funds through in-kind creations, converting off-platform BTC into brokerage-account assets they can borrow against or include in estate plans, Bloomberg reported Tuesday.
The mechanics rest on a summer policy shift.
On July 29, 2025, the U.S. Securities and Exchange Commission (SEC) announced the decision to approve orders allowing in-kind creations and redemptions for crypto-asset exchange-traded product (ETP) shares, a policy which covers spot bitcoin exchange traded funds (ETFs).
The agency called the change a break from earlier cash-only approvals for spot bitcoin and ether and an alignment with long-standing practice for commodity ETPs.
In practice, the SEC said authorized participants can deliver or receive the underlying asset, rather than cash, when creating or redeeming ETP shares. SEC Chair Paul Atkins said the shift would make products “less costly and…
