Bitwise Asset Management said it has completed the industry’s first in-kind creation and redemption for a spot Bitcoin exchange-traded fund, allowing an authorised participant to deliver Bitcoin directly in exchange for ETF shares rather than settling the trade in cash
Bitwise Asset Management said it has completed the industry’s first in-kind creation and redemption for a spot Bitcoin exchange-traded fund, allowing an authorised participant to deliver Bitcoin directly in exchange for ETF shares rather than settling the trade in cash.
Market participants say the shift to in-kind transactions could lower operational costs, narrow bid-ask spreads and reduce management fees by removing the need for issuers to convert cash into Bitcoin and vice-versa. The move also aligns the structure of Bitcoin funds with that of many commodity ETFs that already permit in-kind settlements.
Bitwise’s step is expected to pressure rival spot Bitcoin ETF issuers to adopt similar mechanisms as they seek to attract institutional flows and deepen secondary-market liquidity.
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