Global crypto ETP landscape
Regulatory structures, market access and status by jurisdiction
ETP product structure taxonomy
The term "ETP" encompasses two distinct legal structures across live jurisdictions, each with materially different counterparty exposures, redemption mechanics, and regulatory obligations.
Open-end fund or commodity trust (incl. grantor trusts); investors hold fund shares, not issuer debt
Unsecured debt obligation of issuer; investors are senior creditors, not fund shareholders
US: creation and redemption mechanics: cash model vs. in-kind model
The SEC's Release No. 34-103571 (July 29, 2025) permitted in-kind creations and redemptions for 1933 Act commodity trust shares only. The structural contrast below shows what changed operationally for authorised participants (APs) and custodians.
Limitations: Cash mechanics introduced tracking error, spread widening at creation/redemption, and cost inefficiencies. APs required no direct crypto custody capability.
- Direct crypto custody capability or qualified custodian relationship
- Net capital capacity for crypto asset haircut treatment
- Operational connectivity to trust custodian for on-chain transfers
In-kind mechanics are currently available only to single-asset BTC and ETH commodity trust shares registered under the Securities Act of 1933. Multi-asset index funds and actively managed vehicles registered under the Investment Company Act of 1940 face a separate, unresolved regulatory pathway - including potential exemptive relief from Section 22(g) redemption requirements that do not map cleanly to 24/7 crypto market hours.
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