In a recent episode of the Coinage podcast, SEC Commissioner Hester Peirce said she is open to reconsidering in-kind redemptions for bitcoin ETFs.
(For those who are not familiar with the term “in-kind redemption,” it refers to the ability to withdraw the Bitcoin you purchased via an ETF into your own custody. In essence, it turns the Bitcoin IOU into a real thing.)
BREAKING: SEC Commissioner Hester Peirce previews new pro-crypto changes coming to the SEC
The potential for in-kind redemption of ETFs and the ability of ETF issuers to initiate the staking process "Early"
Both ETFs now have more than $100 billion in assets under management pic.twitter.com/g3jtbuBeWU
– Currency (@coinage_media) December 20, 2024
This makes my heart happy, as Bitcoin was not designed to be trapped inside the shells of the old system. It was built to free us from this system.
If Pierce can work with incoming SEC Chairman Paul Atkins to facilitate approval of in-kind redemptions, spot bitcoin ETFs could serve as some of the biggest onramps into bitcoin, Bitwise co-founder Hong Kim said instead. From simply existing as investment vehicles.
Bitcoin was born to exist in the wild. He wasn’t born to be in the Wall Street Zoo.
In-kind recoveries will allow the Bitcoin currently trapped inside the zoo to be able to return to its natural habitat.
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.