Crypto Trivia 📚 ETF Creation and Redemption
When U.S. spot Bitcoin and Ethereum ETFs first launched, creations and redemptions were only allowed in cash. In July 2025, the SEC allowed crypto asset ETPs to use in-kind creations and redemptions.
ETF shares trade in two markets: everyday investors buy and sell existing shares on exchanges, while authorized participants (APs) create and redeem shares with the issuer in the primary market.
Understanding this won’t make me an expert overnight, but it might help me avoid one basic mistake.
Behind the shares of a spot Bitcoin ETF is the $BTC actually held by the issuer. Currently, 80935.18.
When U.S. spot Bitcoin and Ethereum ETFs first launched, creations and redemptions were only allowed in cash. In July 2025, the SEC allowed crypto asset ETPs to use in-kind creations and redemptions.
ETF shares trade in two markets: everyday investors buy and sell existing shares on exchanges, while authorized participants (APs) create and redeem shares with the issuer in the primary market.
Understanding this won’t make me an expert overnight, but it might help me avoid one basic mistake.
Behind the shares of a spot Bitcoin ETF is the $BTC actually held by the issuer. Currently, 80935.18.
