Cboe BZX Exchange Amends Rules for In-Kind Redemptions in Bitcoin and Ethereum ETFs
- The Cboe BZX Exchange filed an amended rule to allow in-kind redemptions for ARK 21Shares Bitcoin ETF and 21Shares Core Ethereum ETF.
- Prior to SEC approval, firms discussed technical details of redemption processes for spot bitcoin ETFs.
- The SEC initially favored a cash redemption model before approving in-kind redemptions for Bitcoin ETFs in January 2024 and Ethereum ETFs in May.
- Only authorized participants, not individual investors, can perform in-kind redemptions and creations.
The Cboe BZX Exchange’s new rule allows in-kind redemptions for certain Bitcoin and Ethereum ETFs, aligning with recent SEC approvals. Only authorized participants are eligible to execute these transactions.
Source (2.6)https://www.theblock.co/post/337299/cboe-bzx-takes-a-crack-at-in-kind-redemptions-for-spot-bitcoin-and-ethereum-etfs
