The U.S. Securities and Exchange Commission (SEC) has approved in-kind creation and redemption for all spot bitcoin and ether ETFs, allowing institutional traders to use BTC and ETH directly instead of cash.

Strategy has purchased 21,021 bitcoin using proceeds from a newly issued preferred stock offering, the company said Tuesday.

Trading platform eToro plans to tokenize U.S.-listed stocks on the Ethereum blockchain, joining a growing number of firms aiming to bring traditional assets into the crypto ecosystem.

Top stories in the Crypto Roundup today:

• SEC Approves In-Kind Redemptions for Spot Bitcoin, Ether ETFs
• Strategy Buys $2.4B in Bitcoin After Oversubscribed Preferred Stock Sale
• EToro to Tokenize U.S. Stocks on Ethereum

SEC Approves In-Kind Redemptions for Spot Bitcoin, Ether ETFs

The U.S. Securities and Exchange Commission (SEC) has approved in-kind creation and redemption for all spot bitcoin and ether ETFs, allowing institutional traders to use BTC and ETH directly instead of cash.

The move removes a key barrier for market makers, who previously had to convert dollars into crypto and back again to manage ETF liquidity. 

With in-kind processing, ETF shares can be created or redeemed in the underlying digital assets by authorized participants, streamlining operations and reducing costs.

This is the first major crypto-friendly policy under new SEC Chair Paul Atkins, a longtime advocate for market-friendly regulation. BlackRock, which filed for in-kind approval in January, is among several issuers set to benefit from the shift.

Strategy Buys $2.4B in Bitcoin After Oversubscribed Preferred Stock Sale

Strategy has purchased 21,021 bitcoin using proceeds from a newly issued preferred stock offering, the company said Tuesday.

The $2.4 billion acquisition comes days after Strategy raised nearly $2.5 billion through its new STRC shares, far above the $500 million it initially targeted. The shares will begin trading Wednesday on Nasdaq and carry an initial 9% dividend.

With the latest buy, Strategy now holds 628,791 BTC, worth nearly $74 billion at current prices. The firm remains the largest corporate holder of bitcoin by a wide margin.

EToro to Tokenize U.S. Stocks on Ethereum

Trading platform eToro plans to tokenize U.S.-listed stocks on the Ethereum blockchain, joining a growing number of firms aiming to bring traditional assets into the crypto ecosystem.

The tokenized equities, issued as ERC-20 tokens, will represent underlying shares held by eToro and be redeemable for the actual stock. The goal is to make equities tradable around the clock and compatible with decentralized finance tools.

The move puts eToro in step with rivals. Robinhood launched tokenized stock trading for European customers last month. Kraken, Gemini and Bybit have rolled out similar offerings, betting that blockchain rails can modernize asset trading.

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