đ˘ăSEC Delays Decision on BlackRock Bitcoin ETF In-Kind Redemptionsă
The U.S. SEC has delayed its decision on whether to allow in-kind redemptions for BlackRock's spot Bitcoin ETF, initiating a public comment period.đ
đ The SEC invoked Section 19(b)(2)(B) of the Securities Exchange Act to open formal proceedings.
â ď¸Previously, the SEC preferred cash redemption, where BTC is sold and cash returned to investors. But if in-kind redemptions are approved, ETFs may see enhanced trading efficiency, according to Bloomberg's James Seyffart.
đMeanwhile, the SEC also delayed reviews of Grayscaleâs Litecoin and Solana Trusts, as well as the 21Shares Dogecoin ETF, and is soliciting public feedback.
đTake: The SEC remains cautious, balancing efficiency vs. control. If in-kind redemption gets greenlit, it could tighten price spreads and make ETF trading smoother.đ
