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
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-17058, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Schedule and Discontinue a Previously Proposed Offering
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.