A Quiet SEC Rule Shift Moves Crypto ETFs Closer to Mainstream

The US Securities and Exchange Commission is fast helping to transform digital assets into a mainstream fixture of US markets.

This week, the regulator cleared two key changes: one that streamlines how crypto funds trade, and another that broadens how investors can bet on them. Taken together, the moves signal something larger — an agency that once kept crypto at arm’s length is now laying the plumbing to usher it deeper into Wall Street.

The SEC on Tuesday authorized the use of in-kind creation and redemption mechanisms for crypto ETPs — a significant shift from the cash-only model that had ...