Cboe Proposes In-Kind Bitcoin and Ethereum ETF Updates
The CBOE BZX Exchange has proposed the proposed rules for changes to the US Securities and Exchange Commission (SEC) to modify the ARK 21Shares Bitcoin ETF (ARKB) and 21Shares core Ethereum ETF (Ceth) to allow creation and redemption.
19B-4 Application was submitted on January 27. It only allows authorized participants (AP) to create and redeem.
CBOE’s proposed bitcoin, Ethereum ETF rules change
“Physical” refers to the process of using assets such as Bitcoin or Ethereum rather than cash to create or redeem ETF sharing. For example, if the Associated Press wants to create a new shares of Bitcoin ETF, they will deliver ETF issuer’s Bitcoin is exchanged Used for ETF stock.
Similarly, when they exchange shares, they will Receive Bitcoin instead of cashEssence This process helps to maintain the consistent ETF price as the value of its assets. In addition, it can reduce transaction costs and minimize investors’ taxable activities.
“CBOE BZX Exchange, INC. (” BZX “or” Exchange “) is being submitted to the US Securities and Exchange Commission (” Committee “or” SEC “) to change the proposal to modify the ARK 21Shares Bitcoin ETF (” Bitcoin Trust) “” ) And 21Shares core Ethereum ETF (“ETH TRUST”, and “trust” with Bitcoin Trust, the committee has approved the shares of the shares, and allows physical creation and redemption according to the BZX rules 14.11 (E) (4). ” Record read.
It is worth noting that the following is the following is A few days ago, Nasdaq’s similar application The Ishares Bitcoin Trust (IBIT), representing Blackrock.
According to Bloomberg analyst James Seyffart, the creation and redemption of the inner heart should be Make ETF more effectivelyEssence This is because the process can be simplified. Seyffart believes that this mechanism should be used from the beginning.
“The main point is that the physical model is more streamlined, less steps, and there are fewer parties involved (and most of the most ETF operation methods),” analysts Publish On X.
Bitcoin and Etherwood ETF has received SEC approval In January 2024. IBIT and Gray Ethereum Trust (Ethe) Still the best performance.
At the same time, according to data From the SOSO value, ARKB maintains its position as the fourth largest Bitcoin ETF. As of January 27, its cumulative net inflow was 2.91 billion US dollars. The product also holds a net asset of $ 511 billion. In addition, it accounts for 0.25 % of the Bitcoin market share.
On the other hand, CETH Rank As the eighth The biggest Ethereum ETFEssence As of January 27, its cumulative net inflow net inflow was $ 11.4 million and $ 16.77 million.
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