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In Kind Redemptions

All articles tagged with #in kind redemptions

business5 months ago•2 min saved

SEC Approves In-Kind Redemptions for Bitcoin and Ethereum ETFs, Expanding Options

The U.S. SEC has approved in-kind redemptions for spot Bitcoin and Ethereum ETFs, allowing institutional investors to exchange shares directly for underlying assets, which aims to improve efficiency and reduce costs. This change, praised by SEC officials, does not yet benefit retail investors but marks a significant step for institutional participation. Meanwhile, Ethereum ETFs are gaining market share, though growth may slow, as Bitcoin ETFs experience a decline in inflows.

via AMBCrypto|

#bitcoin #business #crypto-etfs

finance2 years ago•4 min saved

Bitcoin ETFs: SEC's String Attachment and Investor Costs

The Securities and Exchange Commission (SEC) is requiring Bitcoin ETF issuers to carry out transactions with cash instead of Bitcoin for in-kind redemptions, resulting in added complication and increased costs for retail investors. This decision deviates from the norm of in-kind transactions in other ETFs and could potentially make Bitcoin ETFs less attractive. The SEC's reasoning may be to minimize opportunities for manipulation or due to the agency's chairman wanting to impose stricter terms after a defeat in court. Meanwhile, the number of companies turning to blockchain-based loans has increased by 55% in 2023, Coinbase plans to appeal the SEC's rejection of its digital assets framework, and a trio of crypto Super PACs has raised $78 million for industry lobbying in the upcoming election.

via Fortune|

#bitcoin-etfs #finance #in-kind-redemptions