BlackRock’s Ether ETF Gets Key SEC Acknowlegement

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BlackRock’s Ether ETF: The SEC’s New Favorite Toy? 🤔💰

Well, folks, gather ’round! The U.S. Securities and Exchange Commission (SEC) has finally decided to give a nod to BlackRock’s spot-based Ethereum exchange-traded fund (ETF). Yes, you heard it right! They’ve acknowledged in-kind redemption, which sounds fancy but really just means they’re thinking about it. But don’t pop the champagne just yet; there’s no guarantee that this proposal will actually see the light of day. 🍾

Now, if you recall, the SEC played a similar game with spot Bitcoin ETFs back in January. It’s like they’re on a merry-go-round of indecision, and we’re all just along for the ride. 🎠

Fast forward to May 13, and what do we find? The SEC decided to hit the snooze button on making a decision about in-kind redemptions for BlackRock’s wildly successful Bitcoin ETF. Talk about a cliffhanger! And on that very same day, BlackRock thought, “Hey, why not throw in a request for in-kind redemptions for our spot ETH ETF too?” Because why not add more suspense to the plot? 📈

Now, enabling in-kind redemptions means that instead of handing out cash when investors sell their shares, the fund would actually give them the underlying assets. Imagine that! It’s like trading your old car for a shiny new one instead of just getting a check. The “in-kind” model is like the cool kid on the block, way more streamlined than the “in-cash” model. Efficiency is the name of the game, folks! 🏎️💨

But hold your horses! Only authorized participants will get to play with the in-kind redemptions. So, if you’re not on the VIP list, you might as well be watching from the sidelines. 🎟️

Back in December 2023, just before the anticipated approval of spot Bitcoin ETFs, BlackRock caved to the SEC’s demands and decided to exclude in-kind redemptions from their ETF product. Surprise, surprise! The same fate awaits the Ether-based one. It’s like a bad sequel nobody asked for. 🎬

However, with the departure of former SEC Commissioner Gary Gensler, the winds of change might be blowing. Commissioner Hester Peirce has expressed her willingness to reconsider in-kind redemptions. She’s all about letting issuers design products that actually benefit investors. Imagine that! A world where investors get what they want! 🌍✨

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2025-05-22 00:13