BREAKING: SEC Issues New Update on Long-Awaited Feature for Bitcoin ETFs

By: bitcoin ethereum news|2025/05/14 11:15:05
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The U.S. Securities and Exchange Commission (SEC) has postponed a proposed “in-kind redemption” for BlackRock’s spot Bitcoin ETF IBIT, which would require a buyback process using crypto assets instead of cash. This change in structure would allow authorized participants (APs) to buy and sell ETF shares directly with Bitcoin without using cash. Currently, in crypto ETFs, APs can only create and redeem ETF shares via cash. However, with the in-kind system, APs will be able to directly buy ETF shares in exchange for Bitcoin or Ethereum, or redeem their shares with these cryptocurrencies. This method will provide tax advantages, reduce transaction time and costs, and make ETF pricing more accurate. BlackRock’s IBIT fund is currently the largest spot Bitcoin ETF by asset size. Nasdaq has filed a rule change application with the SEC for this structural transformation, which could further increase IBIT’s appeal to institutional investors. If the in-kind system is approved, investors will be able to benefit from the following advantages: Less Tax Burden: Direct use of crypto assets can reduce the tax burden by eliminating cash conversion and therefore taxable transactions. Faster Transactions: Direct swaps between ETF shares and cryptocurrencies can increase transaction speed and efficiency. More Accurate Pricing: The elimination of cash conversions allows ETF prices to be closer to the true market value of Bitcoin or Ethereum. Lower Transaction Fees: Since there is no conversion requirement to dollars, transaction fees can be reduced and liquidity can be increased. *This is not investment advice. Source: https://en.bitcoinsistemi.com/breaking-sec-issues-new-update-on-long-awaited-feature-for-bitcoin-etfs/

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