The U.S. Securities and Exchange Commission has recognized an amended filing from Bitwise Asset Management for its combined spot Bitcoin and Ether exchange-traded fund (ETF). The updated proposal incorporates provisions for physical redemptions, allowing investors to directly receive underlying cryptocurrencies upon share redemption.
Bitwise’s physical redemption mechanism aims to enhance market liquidity and improve transparency for ETF investors, providing greater alignment between share value and actual cryptocurrency holdings. This development marks a significant step in the ongoing regulatory evaluation of cryptocurrency-based financial products.
Industry analysts and market participants are closely tracking the SEC’s response to the amended proposal as regulators continue scrutinizing digital asset ETFs. The adoption of physical redemptions may potentially influence future cryptocurrency ETF structures and compliance requirements.