BlackRock filed to allow in-kind redemptions for its Ethereum ETF, enabling direct ETH transactions.
The firm added 7,976 ETH worth $18.9M, bringing total holdings to over 1 million ETH.
Its Bitcoin trust now holds 614,639 BTC after buying 41,452 BTC in two weeks.
BlackRock has filed an amendment to its S-1 registration for the iShares Ethereum Trust (ETHA), seeking to enable in-kind creation and redemption of ETF shares for its Ethereum ETF. This in-kind mechanism allows authorized participants to exchange ETF shares directly for Ethereum (ETH), bypassing the need for cash transactions.
BlackRock Seeks In-Kind ETH Redemptions to Cut Costs and Track Price Efficiently
The proposed in-kind process aims to enhance tax efficiency, reduce trading costs, and improve liquidity. By facilitating direct ETH transactions, the ETF can better track Ethereum’s market price and minimize capital gains taxes associated with asset sales.
Currently, the ETHA ETF operates on a cash-based system, where ETF shares are created or redeemed using cash, necessitating the buying or selling of ETH in the market. The proposed in-kind model would allow for direct ETH transactions,…
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