How are ETF shares created and redeemed?
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 flows only indicate changes in the number of fund shares. The party creating shares may simultaneously hedge elsewhere, so these flows should not simply be viewed as new buying.
The shares of spot Bitcoin ETFs are backed by Bitcoin actually held by the issuer: $BTC .
#BTC
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 flows only indicate changes in the number of fund shares. The party creating shares may simultaneously hedge elsewhere, so these flows should not simply be viewed as new buying.
The shares of spot Bitcoin ETFs are backed by Bitcoin actually held by the issuer: $BTC .
#BTC
