The SEC has postponed its ruling regarding in-kind creations for BlackRock’s proposed spot Ethereum ETF, the iShares Ethereum Trust (ETHA). This approach would enable Ethereum tokens to be used for share creations and redemptions.
By allowing directEthereum transactions, the in-kind structure aims to reduce slippage and streamline operations, compared to the existing cash-based system, which adds complexity.
BlackRock submitted its registration for the in-kind process in May 2025 and is currently awaiting regulatory approval for this model, which other fund managers are also pursuing for their crypto ETFs.
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