SEC Approves In-Kind Redemption for Crypto ETFs — But Markets Shrug Off the News

TradingKey – On Tuesday, July 29, the U.S. Securities and Exchange Commission (SEC) officially approved in-kind creation and redemption mechanisms for spot Bitcoin (BTC) and Ethereum (ETH) ETFs. 

This means major issuers like BlackRock, Ark21Shares, Fidelity, VanEck, and Franklin Templeton can now settle ETF shares directly in crypto rather than fiat — potentially reducing operational costs and minimizing forced selling pressure.

Market Reaction: Surprisingly Tepid

Despite the regulatory breakthrough, crypto markets remained muted:

• Total crypto market cap fell 0.78% to $3.86 trillion
• BTC dipped 0.58%, trading near $118,931
• ETH rose 0.37%, holding above $3,900
• XRP dropped 0.55%
• BNB fell over 3%, despite recent bullish momentum

Crypto Stocks Slide in Asia

During Tuesday’s Asia session, crypto-linked equities in Hong Kong also declined:

• OSL Group (HK.00863): -6%
• ZhongAn Online (HK.08540): -4%+
• Delin Holdings (HK.01709), Boyaa Interactive (HK.00434), and Guotai Junan International (HK.01788): all down over 2%

Investors appear to be waiting for key U.S. macro data releases this week, including ADP employment, PCE inflation, non-farm payrolls, and the FOMC rate decision, which could reshape risk appetite across asset classes.