Someone asked: How are ETF shares created and redeemed?
My answer: When U.S. spot Bitcoin and Ethereum ETFs first launched, they only allowed cash creations and redemptions. In July 2025, the SEC approved in-kind creations and redemptions for crypto asset ETPs. ETF fund flows only reflect changes in the number of fund shares; those creating shares may also be hedging in other markets, so these flows shouldn’t be viewed directly as new buying.
$BTC 81542.87 (-0.65%)
When did everyone first figure this out?
My answer: When U.S. spot Bitcoin and Ethereum ETFs first launched, they only allowed cash creations and redemptions. In July 2025, the SEC approved in-kind creations and redemptions for crypto asset ETPs. ETF fund flows only reflect changes in the number of fund shares; those creating shares may also be hedging in other markets, so these flows shouldn’t be viewed directly as new buying.
$BTC 81542.87 (-0.65%)
When did everyone first figure this out?