BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

SEC Seeks Comment on In-Kind Redemptions for Bitcoin, Ether ETFs

by Dalmas Ngetich
Feb 11, 2025 - 10:51 pm
in Blockchain
Former Celsius CEO Alex Mashinsky exits court after sentencing

This initiative that was noticed by SEC is all about in-kind redemptions for Bitcoin, Ether ETFs.

The United States Securities and Exchange Commission (SEC) is out for public comments on a decision being made in a proposal that would provide a possibility for Bitcoins (BTC) and Ethereums (ETH) exchange-traded funds (ETFs) to be able to create and redeem their shares in the spot cryptocurrency instead of cash. Currently under review following February 10 filing, this likely change could improve tax efficiency and enhance more institutional participation in the cryptographic market.

Cboe BZX Proposes a New Redemption Model

On February 5, Cboe BZX Exchange filed an amended application requesting permission for in-kind creations and redemptions for ARK 21Shares Bitcoin ETF (ARKB) and 21Shares Core Ethereum ETF (CETH). This approach differs from the SEC’s existing mandate, where crypto ETFs are currently required to perform share creations and redemptions entirely in cash.

In-kind Redemptions are Important

Many authorized traders typically create new ETF shares through cash or basket exchanges of assets underlying the ETF. Redemptions simply reverse this process. In-kind transactions, where an ETF swaps shares for the corresponding basket of digital assets rather than cash, are widely preferred for their tax advantages: reduced capital gains liabilities for investors.

Although showing efficiency, the SEC has not yet approved the in-kind redemptions for spot crypto ETFs. Industry leaders believe that this go-ahead will improve performance of ETF and approve further adoption by major institutions.

Institutional Investment Rising in Crypto ETFs

In the month of January, Nasdaq filed a request to SEC to allow in-kind redemptions for the iShares Bitcoin Trust (IBIT) by BlackRock. This is the largest Bitcoin ETF currently existing and hauls about $57 billion in assets. On the contrary, ARKB and CETH such as have much smaller AUMs of $5 billion and $20 million, respectively.

Regulatory Outlook & Future Crypto ETFs

Industry watchers predict that the new U.S. administration is going to take a softer view toward regulations regarding crypto. Going with the above, approvals for digital asset-related financial products are likely to climb. Various asset managers filed for an ETF with alternative cryptocurrencies such as Solana (SOL), XRP, and Litecoin (LTC) during the year 2024. And they have also developed some crypto index ETFs designed to hold diversified baskets of tokens and have sought clearance from regulators.

According to Bloomberg Intelligence analysts, this might put the prospects of approval for new crypto ETFs at a reasonably probable level. The SEC allowing in-kind redemptions just now might set a landmark precedent for broader institutional engagement and add legitimacy to investment products based on cryptocurrency.

Tags: BlockchainRegulationSEC
Dalmas Ngetich

Dalmas Ngetich

His primary focus is on technical analysis (crypto is, obviously, *not* crypto without the twirls of price action), the magic of DeFi, and NFTs. He is specifically training his eyes and effort on DeFi—and how the tech is changing investment, opening up opportunities for everyone—and the possibilities of NFTs.

Related Posts

Arthur Hayes speaking about Bitcoin as Japan’s new Prime Minister announces economic stimulus measures

Arthur Hayes Predicts $1M Bitcoin as Japan’s New PM Unveils Economic Stimulus

October 22, 2025

Arthur Hayes predicts Bitcoin could hit $1M as Japan’s new PM Sanae Takaichi launches economic stimulus, signaling potential...

blockchain

Bolivia’s President-Elect Rodrigo Paz Turns to Blockchain to Fight Corruption

October 20, 2025

Bolivia’s new president Rodrigo Paz plans to use blockchain in public procurement and crypto asset declarations as part...

Metaplanet and Bitcoin Magazine logos, symbolizing their new partnership to expand operations in Japan.

Japan Moves Toward Allowing Banks to Buy Bitcoin Under New Regulatory Framework

October 19, 2025

Japan’s regulators are reviewing changes that could let banks buy and hold Bitcoin, signaling a major shift in...

24H HOLD token price chart showing 35% surge despite market pullback

Crypto markets surge as Trump confirms October 31 summit with Xi Jinping

October 19, 2025

Crypto markets rebound after Trump confirms October 31 summit with Xi Jinping, easing US-China tensions and sparking optimism...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service