SEC Unlocks Crypto Swaps for Invesco's Bitcoin and Ethereum ETFs
Published Date: 7/25/2025
Notice
Summary
The Cboe BZX Exchange wants to change the rules for the Invesco Galaxy Bitcoin and Ethereum ETFs to allow investors to create and redeem shares 'in-kind'—meaning they can swap actual crypto assets instead of cash. This change could make trading smoother and cheaper for investors holding these ETFs. The SEC is reviewing the proposal, with decisions and possible trading impacts expected soon.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Bitcoin ETF: Allow In‑Kind Creations/Redemptions
If you own the Invesco Galaxy Bitcoin ETF, the Exchange proposes that authorized participants may create or redeem shares by delivering or receiving bitcoin (in‑kind) instead of cash. Creations/redemptions would occur in Creation Baskets of 5,000 shares, and in‑kind purchase orders must be placed by 4:00 p.m. Eastern Time on a business day.
Ethereum ETF: Allow In‑Kind Creations/Redemptions
If you own the Invesco Galaxy Ethereum ETF, the Exchange proposes that authorized participants may create or redeem shares by delivering or receiving ether (in‑kind) instead of cash. Creations/redemptions would occur in Creation Baskets of 5,000 shares, cash creation orders must be placed by 2:30 p.m. Eastern Time, and in‑kind creation orders must be placed by 4:00 p.m. Eastern Time on a business day.
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Key Dates
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Previous / Next Documents
Previous: 2025-14033 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend the Rule Governing the Listing and Trading of the WisdomTree Bitcoin Fund To Permit In-Kind Creations and Redemptions
The Cboe BZX Exchange wants to change the rules for the WisdomTree Bitcoin Fund so investors can create and redeem shares using actual Bitcoin instead of cash. This update could make trading smoother and cheaper for fund participants starting soon after approval. If you’re involved with this fund, keep an eye out because this change could save money and speed up transactions.
Next: 2025-14035 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend the Rule Governing the Listing and Trading of the Franklin Bitcoin ETF, the Franklin Ethereum ETF, and the Franklin Crypto Index ETF To Permit In-Kind Creations and Redemptions
The Cboe BZX Exchange wants to update the rules for trading Franklin’s Bitcoin, Ethereum, and Crypto Index ETFs to allow in-kind creations and redemptions. This means investors can swap actual crypto assets instead of just cash, making trading smoother and potentially cheaper. The SEC is reviewing this change now, and if approved, it could start soon, helping crypto ETF traders save money and trade more efficiently.