Bitcoin ETFs: 21Shares Proposes In-Kind Redemption

21Shares Proposes In-Kind Mechanism for Bitcoin and Ethereum ETFs

• 21Shares has filed a proposal for in-kind creation and redemption of Bitcoin and Ethereum ETFs.
• The proposal was submitted through the Cboe BZX Exchange.
• This approach allows ETF shares to be exchanged directly for Bitcoin or Ethereum, not cash.
• BlackRock’s iShares Bitcoin Trust, with a similar filing by Nasdaq, has seen nearly $40 billion in inflows since January.
• The SEC initially approved only cash-based transactions for crypto ETFs.

The proposed in-kind mechanism by 21Shares aims to enhance operational efficiency and liquidity for institutional investors, following BlackRock’s successful ETF launch with significant inflows. This reflects an evolving regulatory landscape in crypto ETF operations.