Momentum is building for U.S. spot cryptocurrency exchange-traded funds to move from cash to in-kind share creation and redemption after both public comments from regulators and a cluster of new issuer filings. SEC Commissioner Hester Peirce said at a June 26 event that allowing in-kind flows for crypto ETFs is “definitely coming at some point,” noting that several proposals were already under review. The comments marked the first public indication from the agency’s leadership that the current cash-only model imposed on the products in early 2024 could soon be relaxed. Less than a month later, five issuers—Ark 21Shares, Fidelity, Franklin Templeton, Galaxy/Invesco, VanEck and WisdomTree—submitted amendments through Cboe on 22 July seeking permission to offer in-kind redemptions for their Bitcoin and Ethereum funds. Analysts at Bloomberg and other research firms said the coordinated filings suggest the SEC is working with industry participants to fine-tune an operational framework rather than resisting the change. In-kind mechanisms let authorized participants exchange ETF shares directly for the underlying tokens instead of cash, a structure common in equity and commodity funds. Proponents argue the switch would lower tax liabilities, cut trading spreads and improve primary-market liquidity, while regulators have flagged custody and security risks that still need to be addressed. The SEC has postponed several related deadlines, including decisions on Bitwise and BlackRock proposals, but the latest developments point toward possible approval later this year.