Today the SEC approved creations and redemptions in kind. For a variety of reasons this is really important. 1) It puts crypto ETPs in line with other physical metal ETPs where APs can use affiliates to deliver and receive commodities in kind.

2) It actually means there is more regulatory oversight over the acquisition and disposition of crypto assets because it will be done on behalf of the regulated broker dealers (vs by the funds that are not, themselves, regulated entities; they only register their shares).

3) In kind promotes a more efficient market and improves the experience for fund shareholders. This has tax benefits because Grantor Trusts (and most ETFs) can have efficient creation and redemption without realizing taxable dispositions for in kind c/r.

4) It also makes it harder for someone to theoretically manipulate ETP shares around the creation/redemption process. Large c/r orders can force a cash-only fund to engage in the market. Div of IM has expressed a fondness for in-kind making ETFs more resistant to manipulation.

In sum, big kudos to Chair Atkins and Commissioners Uyeda and Peirce for correcting the wrong and ill-thought out efforts to stifle in-kind creates and redeems. No let’s get staking, GLS and SOL ETPs done!