The SEC has approved in-kind creation and redemption processes for all spot Bitcoin and Ethereum ETFs, allowing institutional investors to use BTC or ETH directly instead of cash. This decision, a major policy shift under SEC Chair Paul Atkins, aims to enhance market efficiency and reduce operational complexities for ETF issuers like BlackRock. Additionally, the SEC increased position limits for options trading on Bitcoin ETFs, suggesting a growing acceptance of crypto assets within traditional regulatory frameworks.