ARK Invest and 21Shares address cash creation and redemption process in latest spot Ethereum ETF filing | Headlines | News | CoinMarketCap
02/08/2024 02:30
A spot Ethereum exchange-traded fund proposal from Cathie Wood's ARK Invest and 21Shares will only have a process to deliver cash in its create and …
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Published on February 07, 2024 19:04 GMT+00:00edited on February 07, 2024 19:09 GMT+00:00
A spot Ethereum exchange-traded fund proposal from Cathie Wood's ARK Invest and 21Shares will only have a process to deliver cash in its create and redemption process, according to its latest regulatory filing.
"Authorized Participants will deliver only cash to create shares and will receive only cash when redeeming Shares," according to the filing posted on Wednesday.
The process of creating and redeeming shares in exchange traded funds had earlier been at the forefront of meetings between the Securities and Exchange Commission and issuers looking to launch spot bitcoin ETFs. The SEC likely favors a cash model, which requires issuers to move assets out of storage and sell it right away to then give cash back to the investor, which differs from an in-kind model. An in-kind model, which …