21Shares proposes the creation and redemption in kind for their ETF of bitcoin and ethereum, with the objective of a more efficient fund management.
The proposal follows the similar presentation of Nasdaq for Ishares bitcoin Trust of Blackrock.
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21 Shares sent A proposal to the SEC that seeks the approval of the mechanisms of creation and redemption in kind for its ETF bitcoinbitcoin Ark 21shares and ETF ethereum of 21Shares Core.
The proposal, presented through CBOE BZX Exchange, would allow authorized participants to directly exchange ETF actions by bitcoin or ethereum instead of cash.
The focus in kind is designed to improve operational efficiency by allowing authorized participants to better agree with the ETF supply with market demand while reducing costs.
The mechanism would also provide better liquidity and operational flexibility for institutional investors that manage these funds.
The presentation follows a similar application of Nasdaq for Ishares bitcoin Trust of Blackrock, which also seeks to implement redemption in kind.
The Blackrock ETF has become the largest bitcoin ETF, generating almost $ 40 billion in tickets since its launch in January, which makes it the most successful ETF launch ever registered.
Although the initial approvals of the SEC for the bitcoin and ethereum ETFs only allowed cash -based transactions, the industry now advocates in kind mechanisms, which indicates an evolution in the regulatory and operational approaches of cryptographic ETFs.
The proposed amendment, if approval is granted, could establish a new standard for cryptographic ETF operations, reducing transaction friction and increasing efficiency for institutional investors.
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