Chairman Paul Atkins said in a statement:
“It’s a new day at the SEC, and a key priority of my chairmanship is developing a fit‑for‑purpose regulatory framework for crypto asset markets. Investors will benefit from these approvals, as they will make these products less costly and more efficient.”
Jamie Selway, who leads the Division of Trading and Markets, called the decision “an important development” that adds flexibility for issuers and authorized participants.
The Commission also advanced a broader slate of measures by approving exchange applications to list a mixed spot Bitcoin‑and‑Ether ETP, options on certain spot Bitcoin ETPs, FLEX options on shares of some BTC‑based ETPs, and an increase in position limits up to the generic 250,000‑contract cap for listed options on certain BTC ETPs.
In addition, the SEC issued scheduling orders seeking comment regarding delegated approvals for two large‑cap crypto‑based ETPs.
Under the new orders, authorized participants (APs) can deliver or receive BTC or ETH when creating or redeeming ETF shares. APs are typically large trading firms and banks.
For most investors, trading will look the same, as the shares will still change hands on exchanges and track net asset value closely. As a result, the shift is structural, allowing APs to move crypto directly rather than sourcing or unwinding large cash positions.
This enables funds to lower frictions, tighten spreads, and manage baskets more efficiently, especially in volatile markets.
