- CBOE filed with the SEC for in-kind redemptions for Bitcoin and Ethereum ETFs
- This proposal could improve trading efficiency and market liquidity
- Bitcoin ETFs have added over $4.2 billion since January 15th
CBOE (Chicago Board Options Exchange) has just filed with the SEC a petition to create an “in-kind redemptions” option for Bitcoin and Ethereum exchange-traded funds. The proposal aims to allow ETF investors for the Ark 21Shares Bitcoin ETF, and the Ark 21Shares Ethereum ETFs.
If approved, the proposal will allow authorized participants to exchange ETF shares directly for the underlying asset the exchange-traded funds are based on. In other words, Bitcoin ETF shareholders could swap their funds directly into Bitcoin assets.
This development could have a serious impact on the ETF market, as in-kind redemptions are seen as a more efficient way of trading — avoiding the need to sell Bitcoin for cash or vice versa.
Moreover, this process also boosts the market liquidity as it directly addresses the issue of large sales affecting the Bitcoin market. Also, it makes it easier for investors to buy and redeem shares.
By doing so, investors or fund managers can create new ETF shares by adding bitcoin straight into the fund. It also works the other way around as participants would be allowed to retrieve the shares in exchange for Bitcoin.
Bitcoin ETFs Continue To Register Inflows
Meanwhile, the Bitcoin ETF market continues to impress with nearly all funds registering deposits over the last 8 days.
According to data from Farside Investors — the collective of exchange-traded funds have added over $4.2 billion in Bitcoin since January 15th. On a streak of 7 straight positive days for these funds, the Bitcoin ETF market is currently on one of the hottest streaks in recent memory.
Blackrock (IBIT), Fidelity (FBTC), Bitwise (BITB), and Ark (ARKB) have led the dance of this winning streak. These four funds have amassed $4.03 billion in Bitcoin over the last seven days,
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