Bitcoin, Ethereum ETF Issuers Likely to Get SEC Approval for In-Kind Redemptions: Analyst
In-kind redemptions are increasingly likely to be included in Bitcoin and Ethereum exchange-traded funds (ETFs), according to Bloomberg ETF analyst James Seyffart. Five issuers—Invesco Galaxy, Ark 21Shares, VanEck, WisdomTree, and Fidelity—have filed amendments to their prospectuses with the U.S. Securities and Exchange Commission (SEC). These filings suggest progress in discussions with regulators regarding in-kind redemptions, which allow investors to redeem ETF shares for underlying tokens, potentially avoiding tax liabilities. However, the SEC has expressed concerns about security and logistical complexities associated with this process. The agency has delayed decisions on in-kind redemptions for several ETFs, including Bitwise and BlackRock’s iShares Ethereum Trust. Despite a more crypto-friendly regulatory environment under the current administration, the SEC has been slow to approve many digital asset-based ETF applications.
