Cboe Files to Allow this for Bitcoin and Ethereum ETFs

Cboe BZX Exchange, Inc. has filed with the SEC a 19b-4 proposal to allow in-kind creations and redemptions for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF.

Filing Details

The proposed rule change will seek to permit in-kind transactions for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF. In-kind redemptions allow participants who are eligible to redeem shares of the ETF for the underlying cryptocurrency assets directly, which will cut the costs of the transaction and provide more accurate market price.

Expanding Momentum for Spot ETH and Bitcoin ETF

This filing from Cboe comes at the time when the cryptocurrency ETF market is picking up steam as several large asset management companies are working towards getting approval for spot Bitcoin ETFs. These include BlackRock and Fidelity among others that all applied for a spot Bitcoin ETF earlier.

Through including in-kind transactions in its application, Cboe strengthens its application for approval, as well as promotes a structure that will benefit institutions and retail investors.

In-kind capability is particularly valuable for spot ETFs because it allows them to minimize tracking errors and increase their trading flexibility.

This move by Cboe indicates that cryptocurrency is slowly but surely being integrated into the financial market, and provides institutions with a good opportunity to invest in Bitcoin and Ethereum.

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The momentum for crypto ETFs continues with Tuttle Capital Management filing with the SEC to list 10 leveraged crypto ETFs. These include funds tracking major cryptocurrencies like Solana (SOL) and XRP, as well as emerging assets such as Cardano (ADA), Chainlink (LINK), Polkadot (DOT), and memecoins like TRUMP, MELANIA, and BONK.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

Source: https://www.thecoinrepublic.com/2025/01/28/cboe-files-to-allow-in-kind-creations-redemptions-bitcoin-etf-ethereum-etf/