In another vote of confidence for the virtual currency market, the United States Securities and Exchange Commission has approved in-kind creation and redemption for all spot Bitcoin and Ethereum ETFs. But what does that mean?
The SEC announced on July 28 that it had finalized orders allowing authorized participants to create and redeem shares of cryptocurrency exchange-traded products (ETPs) using the underlying digital currencies—Bitcoin or Ethereum—instead of cash.
This change applies to all approved spot Bitcoin and Ethereum ETFs, including those issued by industry heavyweights like BlackRock, Fidelity, Ark Invest, and VanEck.
The approvals were granted via fast-track processes to major exchanges, including Nasdaq, NYSE Arca, and Cboe BZX. These exchanges had requested permission for in-kind transactions as an alternative to the previously mandated cash-only model.
With the SEC’s green light, these platforms can now implement more efficient ETF structures in line with standard practices used for non-crypto funds.
The trader became very popular last week when they correctly timed the shorting of both Bitcoin (BTC) and Ether (ETH) just a few minutes before Donald Trump announced 100% tariffs on Chinese imports. The news led to a massive sell-off in digital assets, which is what caused record liquidations.
The on-chain detective, Specter, said that the trader used $80 million for the BTC short and $30 million for the ETH short, thus making a seven-day profit of almost $158 million in total. Online investigator Coffeezilla said that the trader’s last move was at 20:49 GMT while Trump tweeted his post at 20:50 GMT, so it was just “incredible luck” that the timing was off by one minute.
After the trades, on-chain analysts like Eye considered that the large crypto holder might be the same person as the whale wallet and the ex-CEO of the crypto exchange that went out of business, Garrett Jin. Eye remarked that the wallet connected to Jin made a 40,000 USDT transfer to “ereignis.eth,” a wallet linked with the Hyperliquid whale.
Nevertheless, blockchain detective ZachXBT disputes this linkage and calls it an “unconfirmed theory” that is only supported by a few transaction data points. On the other hand, some other posts hint that Jin has a Polymarket account where he is wagering a Binance CEO Changpeng Zhao’s former going under pardon, and currently, the bet is plus 39% in profit.
