BlackRock has filed a request for in-kind redemption of shares of the exchange-traded Ethereum fund (ETH) and added $18.9 million worth of Ethereum.
BlackRock has filed a request to allow for in-kind redemption of shares of the exchange-traded Ethereum fund (ETH), enabling direct Ethereum transactions.
The company added 7,976 Ethereum worth $18.9 million, bringing its total holdings to over a million Ethereum.
Its Bitcoin fund now owns 614,639 Bitcoin after purchasing 41,452 Bitcoin in just two weeks.
BlackRock has filed an amendment to its S-1 registration for the iShares Ethereum Trust (ETHA), seeking to enable the creation and redemption of shares of the exchange-traded Ethereum fund (ETH) in-kind. This in-kind mechanism allows authorized participants to exchange shares of the exchange-traded Ethereum fund directly for Ethereum (ETH), bypassing the need for cash transactions.
BlackRock aims to redeem in-kind Ethereum to reduce costs and track prices efficiently. The proposed in-kind redemption process is intended to enhance tax efficiency, lower trading costs, and improve liquidity. By facilitating direct Ethereum transactions, the exchange-traded fund can better track the market price of Ethereum and reduce capital gains taxes associated with asset sales.
The Ethereum exchange-traded fund currently operates on a cash basis, where its shares are created or redeemed for cash, necessitating the buying or selling of Ethereum in the market. The proposed in-kind redemption model will allow for direct Ethereum transactions.
The post "BlackRock files for in-kind redemptions for exchange-traded Ethereum funds, adding $18.9 million worth of Ethereum" was first published on Coin Edition.
