The Cboe BZX Exchange, Inc. has proposed a change to allow the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF to enable in-kind creations and redemptions. Instead of dealing solely in cash, investors can now create or redeem shares using bitcoin or ether, which potentially enhances market efficiency. This change aims to reduce the impact of these transactions on the market by letting participants manage how they acquire or dispose of crypto assets. The proposal is under review by the Securities and Exchange Commission, which is seeking public feedback.
Simple Explanation
The Cboe BZX Exchange wants to let people trade shares of certain Bitcoin and Ethereum funds using the actual bitcoins or ethers they own, instead of cash, so it might make the trading smoother and less bumpy like a playground slide.