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ARK 21Shares Bitcoin ETF Seeks Approval to Allow In-Kind Redemptions

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ARK 21Shares Bitcoin ETF Seeks Approval to Allow In-Kind Redemptions

Key Points:

  • Cboe BZX Exchange filed a proposal to allow in-kind redemptions for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF.
  • The change aims to improve operational efficiency and liquidity and reduce costs, benefiting institutional investors managing these funds.

Cboe BZX Exchange has filed a proposal to allow spot Bitcoin and Ethereum exchange-traded funds (ETFs) to utilize in-kind redemptions, a move that could significantly improve liquidity and operational efficiency.

Read more: ARK 21Shares Bitcoin ETF Attracts Over $113M Inflows  

Cboe BZX Proposes In-Kind Redemptions for ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF

The amended filing, which was submitted on Monday, specifically targets the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF. This change would enable ETF shares to be exchanged directly for Bitcoin or Ethereum rather than in cash.

The proposal aims to align the ETF creation and redemption process with the specific assets held in the funds. According to the filing, the change would apply to the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF, both of which have already been approved for listing on the exchange.

BlackRock’s iShares Bitcoin Trust Follows Suit with Similar Filing

The in-kind redemption mechanism is designed to streamline operations, reduce costs, and improve liquidity, particularly for institutional investors managing large volumes of these funds.

The filing follows a similar move from Nasdaq, which filed on behalf of BlackRock’s iShares Bitcoin Trust. BlackRock’s ETF has become the largest spot Bitcoin ETF, generating nearly $40 billion in inflows since its January launch, making it the most successful ETF debut ever.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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John Kojo Kumi

28 January 2025, 03:01:00 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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