BlackRock and SEC Discuss In-Kind Redemption for Crypto ETFs
- BlackRock met with the SEC’s Crypto Task Force on April 1 to discuss crypto ETF workflows.
- The meeting focused on transitioning to in-kind redemptions for digital asset funds.
- In-kind redemptions allow ETF shares to be exchanged directly for the underlying asset, like Bitcoin.
- BlackRock holds over 574,000 BTC in its IBIT fund and more than 1.1 million ETH in its Ether ETF.
- The SEC has mandated cash-only redemption models since approving spot Bitcoin ETFs in January 2024.
On April 1, BlackRock engaged with the SEC’s Crypto Task Force to explore in-kind redemption structures for crypto ETFs, a model that could enhance efficiency by allowing direct exchange of ETF shares for assets such as Bitcoin. BlackRock’s significant holdings include over 574,000 BTC and more than 1.1 million ETH.
Source (2.6)https://cryptobriefing.com/crypto-etfs-exploration-blackrock-sec/?rand=59535
