Crypto Swaps Now OK for Bitcoin and Ether ETFs
Published Date: 8/1/2025
Notice
Summary
Big news for folks investing in Bitcoin and Ether ETFs! The Nasdaq, Cboe BZX, and NYSE Arca exchanges just got the green light to let certain crypto trust shares be created and redeemed 'in-kind'—meaning investors can swap actual crypto instead of cash. This change speeds up trading and could save money, starting right away for several popular crypto funds.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
In‑Kind Creation/Redemption Allowed
On July 29, 2025 the SEC approved allowing certain bitcoin- and ether-based Commodity-Based Trust Shares listed on Nasdaq, Cboe BZX, and NYSE Arca to create and redeem shares in-kind using spot bitcoin or spot ether instead of only cash. The order says this gives the trusts an additional method to transact with authorized participants and may enhance tax efficiencies and minimize transaction costs.
Which Funds Can Use In‑Kind Trades
The approval applies specifically to named bitcoin and ether Commodity-Based Trust Shares listed on Nasdaq, Cboe BZX, and NYSE Arca. Affected funds include (among others) iShares Bitcoin Trust and iShares Ethereum Trust (Nasdaq); ARK 21Shares Bitcoin ETF, 21Shares Core Ethereum ETF, Fidelity Wise Origin Bitcoin Fund, Fidelity Ethereum Fund, VanEck Bitcoin ETF, VanEck Ethereum ETF, WisdomTree Bitcoin Fund, Invesco Galaxy Bitcoin ETF, Invesco Galaxy Ethereum ETF, Franklin Bitcoin ETF, Franklin Ethereum ETF, Franklin Crypto Index ETF (BZX); and Bitwise Bitcoin ETF Trust and Bitwise Ethereum ETF (NYSE Arca).
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Key Dates
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Previous: 2025-14542 — Self-Regulatory Organizations; Nasdaq ISE LLC; Order Approving a Proposed Rule Change, as Modified by Amendment No. 1, To Permit the Trading of FLEX Options on Shares of the iShares Bitcoin Trust ETF
Nasdaq ISE just got the green light to let traders buy and sell FLEX options on the iShares Bitcoin Trust ETF, giving investors more ways to play with Bitcoin-linked shares. This change affects anyone trading these options and could open up new strategies starting soon, with no extra fees announced. It’s a fresh, flexible way to invest in Bitcoin through the stock market!
Next: 2025-14544 — Self-Regulatory Organizations; Nasdaq PHLX LLC; Order Approving a Proposed Rule Change To Permit the Trading of FLEX Options on Shares of the iShares Bitcoin Trust ETF
The SEC just gave the green light for Nasdaq PHLX to let traders buy and sell FLEX options on the iShares Bitcoin Trust ETF. This means investors can now trade flexible, customizable options on Bitcoin shares, with both cash and physical settlement choices. The change kicks in soon, opening new ways to invest and manage risk in the Bitcoin market.