Benchmarking Gold ETFs! Bitcoin and Ethereum spot ETFs Begin Transformation to Physical Redemption
Source: bitcoinist
Translated by: Blockchain Knight
The SEC is gradually advancing structural reforms for Bitcoin and Ethereum ETFs. Previously, five products listed on the Chicago Board Options Exchange (Cboe) BZX simultaneously applied to change their cash-only redemption model to a physical redemption mechanism, which has long been widely used in commodity and stock ETFs.
The documents submitted later on July 22 cover the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF (jointly included in SR-CboeBZX-2025-010 Amendment No. 3), WisdomTree Bitcoin Fund (SR-CboeBZX-2025-033 Amendment No. 1), and Fidelity Wise Origin Bitcoin Fund and Fidelity Ethereum Fund (SR-CboeBZX-2025-023 Amendment No. 1).
Each amendment revised the terms in the document approved in early 2024 that mandated trusts to adopt a cash redemption clause, replacing it with the phrase "cash or physical transactions" and adding detailed settlement processes for the direct transfer of Bitcoin or Ethereum between the trust custodian and authorized participants.
