US SEC delays decision on Fidelity’s in-kind redemptions for Bitcoin and Ethereum ETFs as review of crypto ETF proposals continues.
The US Securities and Exchange Commission (SEC) has deferred its judgment over Fidelity’s proposal to incorporate in-kind redemptions in its spot Bitcoin and Ethereum exchange-traded funds (ETFs).
This judgment arises as issuers throughout the cryptocurrency sector persist in pursuing approval for enhancements intended to optimize ETF operations and efficiency.
US SEC Delays Fidelity’s In-Kind Redemption Capability
Fidelity is one of several prominent asset managers who have submitted applications to permit in-kind redemptions in their spot bitcoin ETFs.
In-kind redemptions enable approved participants to exchange ETF shares directly for the underlying crypto assets rather than for cash.
Conventional ETFs frequently employ these methods to mitigate trading expenses and tax implications.
The SEC has lately recognized a comparable request from BlackRock concerning its spot Ethereum ETF, although it has postponed Fidelity’s bids for both Bitcoin and Ethereum ETFs.
The regulatory agency has not disclosed a date for the issuance of the final decision.
Fidelity is not the sole issuer encountering problems.
In April, the SEC deferred decisions on in-kind redemption proposals from WisdomTree for its Bitcoin Fund (BTCW) and Ethereum Fund (ETHW), along with VanEck’s Bitcoin Fund (BITB).
