Cboe BZX takes a crack at 'in-kind' redemptions for spot Bitcoin and Ethereum ETFs
The equities exchange posted an amended rule filing on Monday that would allow for in-kind redemptions and creations for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF. Ahead of the U.S. Securities and Exchange Commission’s approvals for spot bitcoin ETFs over a year ago, firms were hashing out technical details over how the redemption process would work for those products.
Cboe BZX Exchange Inc. filed changes to allow for spot Bitcoin and Ethereum exchange-traded funds to allow for in-kind redemptions, instead of cash.
The equities exchange posted an amended rule filing on Monday that would allow for in-kind redemptions and creations for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF. This comes just days after Nasdaq made a similar filing on behalf of BlackRock for its iShares Bitcoin Trust.
"The Exchange proposes to amend the ARK 21Shares Bitcoin ETF (the 'Bitcoin Trust') and the 21Shares Core Ethereum ETF (the 'ETH Trust' and, collectively with the Bitcoin Trust, the 'Trusts'), shares of which have been approved by the Commission to list and trade on the Exchange pursuant to BZX Rule 14.11(e)(4), to permit in-kind creations and redemptions," according to the filing.
Ahead of the U.S. Securities and Exchange Commission's approvals for spot bitcoin ETFs over a year ago, firms were hashing out technical details over how the redemption process would work for those products. The SEC favored a cash model that required issuers to move bitcoin out of storage, sell it right away, and then give the cash back to the investor.
Later, the SEC approved spot bitcoin ETFs in January 2024 with in-kind redemptions and later greenlit spot Ethereum ETFs in May. A potential change in process won’t mean that individual investors will be able to do “in-kind’ redemptions and creations, just the authorized participants involved, said James Seyffart, Bloomberg Intelligence ETF analyst, on Friday in a post on X.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin dips below $100,000, memecoins plummet as market responds to US tariffs
The crypto market has dipped in response to President Trump’s plan to enact steep tariffs on imported goods from Canada, Mexico, and China beginning on Tuesday.Canada and Mexico have ordered retaliatory tariffs in response, while China promised “corresponding countermeasures” and said it would file a lawsuit with the WTO.Memecoins were particularly hard-hit by the downturn, with many top coins seeing double-digit percentage drops. Trump’s memecoin has fallen nearly 30% over the past week.
PEPE Shows Strong Bottoming Signals—Is It Gearing Up for Another 10x Surge Like in February/March 2024?
Algorand (ALGO) Testing Key Bullish Pennant Support: Will It Make a Bounceback?
Why Major Altcoins Including XRP, XLM, and HBAR Are Facing a Significant Decline—Is a Bounceback Ahead?