On March 13th, according to Decrypt, Cboe BZX Exchange has submitted a proposed rule change on behalf of Invesco Galaxy to the U.S. Securities and Exchange Commission (SEC), aiming to allow its physical Bitcoin ETF and Ethereum ETF to create and redeem shares in-kind. In-kind redemption and creation allow for the direct exchange of the ETF's underlying assets (Bitcoin or Ethereum) with ETF shares, bypassing the need for cash. This approach eliminates the need for participants to sell the underlying cryptocurrency to create shares, reduces bid-ask spreads, and avoids additional brokerage commissions.
