SEC delays decision on in-kind redemption for Bitwise Bitcoin and Ethereum ETFs

The U.S. Securities and Exchange Commission (#SEC ) has postponed its decision on in-kind redemptions for the Bitwise Bitcoin ETF and Ethereum ETF #Bitwise . The final decision will be made on September 8.

Regulatory concerns and caution

In-kind redemptions allow investors to exchange ETF shares for the underlying tokens of the fund, helping to avoid certain tax liabilities. However, regulators remain cautious due to concerns about the complexity and security of this type of arrangement.

This move comes against the backdrop of asset managers rushing to submit a flurry of ETF applications tracking memecoin prices, altcoins, and even NFTs, as well as requests to add staking features to existing funds. Although the Trump administration was friendlier to crypto, the SEC continues to exercise caution regarding cryptocurrency-based investment proposals.