BlackRock adds in-kind redemption to Ethereum ETF in latest S-1 revision
The post BlackRock adds in-kind redemption to Ethereum ETF in latest S-1 revision appeared on BitcoinEthereumNews.com.
Asset manager BlackRock has filed an amended S-1 to allow in-kind creation and redemption for its Ethereum spot exchange-traded fund (ETF) ETHA. If approved, it will be possible to exchange ETF shares for the underlying assets instead of having to use cash, as is currently the case. With the move, BlackRock joins the Ether ETF issuers who have also applied for the same amendment. These include Invesco Galaxy, VanEck, WisdomTree, and 21 Shares. There are also pending applications allowing in-kind creation and redemptions for Bitcoin ETFs. So far, the Securities and Exchange Commission (SEC) has delayed making any decision on the requests. In April, the decision for the VanEck and WisdomTree in-kind creation requests for their spot Bitcoin and Ether ETFs was further postponed until June 3. However, experts believe that the SEC will approve in-kind redemption this year. Senior ETF analysts at Bloomberg, Eric Balchunas, and James Seyffart, share this view. Seyffart noted that the final deadline for the SEC decision on the first-in-kind redemption request for Ethereum ETFs is November 10 this year. If in-kind approval is granted, experts believe it will allow for more efficiency in the crypto ETF market and improve liquidity in the sector. Participants will no longer need the extra steps and costs of converting BTC or ETH to cash and vice versa. Seyffart said back in January that ETFs should have been allowed to operate like this from their launch, but it was only a compromise at the time so that the SEC would approve. However, authorized participants and institutional investors are the real beneficiaries, as retail investors cannot take advantage of in-kind creation and redemption. BlackRock highlights quantum computing risks for IBIT Meanwhile, BlackRock has also submitted an updated filing for its Bitcoin product IBIT. Seyffart pointed out that this update included…
Filed under: News - @ May 10, 2025 10:29 am