In 2024, the SEC approved Bitcoin ETFs, but it is anticipated that the commission's policy will soon shift towards in-kind returns.
Approval of Bitcoin ETFs and In-Kind Returns
The U.S. Securities and Exchange Commission (SEC) approved applications for spot Bitcoin ETFs in 2024, but conditioned this on restrictions regarding in-kind returns. Changes may be imminent.
BlackRock's Application for In-Kind Returns
At the beginning of 2025, BlackRock filed for in-kind returns for its ISHARES Bitcoin ETF. The company has been in discussions with the SEC for months regarding the possibility of implementing such features in Bitcoin ETFs.
Hester Peirce's Insights on Bitcoin ETFs
SEC Commissioner Hester Peirce speaking at the Bitcoin Policy Institute expressed that in-kind returns for Bitcoin ETFs are inevitable. "The SEC really mismanaged the spot Bitcoin ETF. I think that this approval will definitely happen," she noted.
If the SEC alters its position and approves in-kind returns for Bitcoin ETFs, it could positively affect the cryptocurrency market by reducing selling pressure.
