The Securities and Exchange Commission (SEC) received a proposed rule change from the Cboe BZX Exchange, Inc. to amend the WisdomTree Bitcoin Fund to allow for in-kind creations and redemptions. Currently, the Trust processes creations and redemptions in cash, but the proposed change will enable them to handle these transactions either in cash or in-kind (using bitcoin). This adjustment is intended to improve the efficiency of the market by allowing authorized participants to transact using bitcoin directly instead of cash, potentially reducing market impact. The SEC is inviting feedback from the public on whether this proposed change aligns with the securities laws.
Simple Explanation
The SEC is looking at a change that would allow a Bitcoin fund to not only use money but also actual bitcoins when people want to buy or sell parts of it. This change could make it easier and faster for people to trade because they wouldn't have to use cash all the time.