inkindredemption
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š· BlackRock Advances Ethereum ETF with In Kind Redemption Proposal
In kind redemption refers to a process where an investor redeems shares of a fund like an ETF not for cash but for the underlying assets held by the fund
For example in the case of an Ethereum ETF if a large investor like an institution requests in kind redemption they would receive actual ETH tokens instead of their cash value
Why It Matters
ā«ļø Efficiency avoids selling assets reducing taxable events
ā«ļø Liquidity helps maintain market stability in volatile times
ā«ļø Cost savings minimizes trading fees for the fund
On May 9 2025 BlackRock submitted an amendment to its S1 filing for the iShares Ethereum Trust ETHA seeking approval from the US Securities and Exchange Commission SEC to implement an in kind creation and redemption mechanism This approach would allow authorized participants to exchange ETF shares directly for Ethereum ETH rather than using cash a method that can enhance tax efficiency and reduce trading costs
This filing marks the first instance of an Ethereum ETF application proposing such a mechanism aligning with practices common in commodity ETFs and potentially increasing the ETFs appeal to institutional investors
The SECs final decision on this proposal is anticipated by November 10 2025
As of May 12 2025 Ethereum is trading at approximately 256141 reflecting a 285 percent increase over the past 24 hours
Note Cryptocurrency investments carry risks Always conduct thorough research before investing
#inkindredemption #blackRock #Ethereum #etf
$ETH
In kind redemption refers to a process where an investor redeems shares of a fund like an ETF not for cash but for the underlying assets held by the fund
For example in the case of an Ethereum ETF if a large investor like an institution requests in kind redemption they would receive actual ETH tokens instead of their cash value
Why It Matters
ā«ļø Efficiency avoids selling assets reducing taxable events
ā«ļø Liquidity helps maintain market stability in volatile times
ā«ļø Cost savings minimizes trading fees for the fund
On May 9 2025 BlackRock submitted an amendment to its S1 filing for the iShares Ethereum Trust ETHA seeking approval from the US Securities and Exchange Commission SEC to implement an in kind creation and redemption mechanism This approach would allow authorized participants to exchange ETF shares directly for Ethereum ETH rather than using cash a method that can enhance tax efficiency and reduce trading costs
This filing marks the first instance of an Ethereum ETF application proposing such a mechanism aligning with practices common in commodity ETFs and potentially increasing the ETFs appeal to institutional investors
The SECs final decision on this proposal is anticipated by November 10 2025
As of May 12 2025 Ethereum is trading at approximately 256141 reflecting a 285 percent increase over the past 24 hours
Note Cryptocurrency investments carry risks Always conduct thorough research before investing
#inkindredemption #blackRock #Ethereum #etf
$ETH
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