Key dealers
- SEC delayed its decision on creations and redemption in some bit for Bitwise Bitcoin and Ethereum ETFs until September 2025.
- The proposed in-kind model would enable authorized participants to transfer actual crypto assets instead of cash for ETF shareholding and redemption.
The US Sec has extended their review period For NYSE ARCA’s proposal to allow creations and redemption of cheek and redemption for Bitwise Bitcoin ETF Trust (Bitb) and Bitwise Ethereum ETF (Ethw).
The controller has operated the deadline for September 8, 2025, from July 25, 2025, with reference to the need for “sufficient time to consider the proposed rule change.”
The In-Kind model that is reviewed would enable authorized participants to transfer Bitcoin and Ethereum directly and replace the current cash-based creation and redemption process. The approach reflects traditional ETF mechanics and aims to reduce sliding and simplify the operations.
According to the proposed system, authorized participants could deliver actual ether to the ETF issuer in exchange for new shares and redeem shares to get ether back, instead of cash settlement.
Competing asset managers, such as 21Shares, Fidelity, Wisdomtree, Blackrock and Vaneck, have submitted similar requests for creation and redemption functions in nature for its crypto-ETFs. Sec recently delayed his decision At Blackrock’s Spot Ethereum ETF proposal regarding creation and redemption in nature.
Despite the current obstacles, ETF experts are optimistic because the proposals are unlikely to be rejected directly, since Sec Commissioner Hester Peirce has stated that creations and redemption in nature “will definitely come sometime.”
