In a recent episode of the Coinage podcast, guest SEC Commissioner Hester Peirce said she is open to reconsidering in-kind redemptions for spot bitcoin ETFs.
(For those unfamiliar with the term “in-kind redemption,” it refers to the ability to withdraw purchased bitcoin into custody via an ETF. Essentially, it turns a bitcoin IOU into an actual thing.)
BREAKING: SEC Commissioner Hester Peirce previews new cryptocurrency-friendly changes coming to the SEC
There will likely be in-kind redemptions of ETFs and the ability for ETF issuers to begin staking "Soon"
Both ETFs now have more than $100 billion in AUM pic.twitter.com/g3jtbuBeWU
— Coinage (@coinage_media) December 20, 2024
This makes me happy, as bitcoin was not designed to be trapped in the shrouds of the old system. It was built to free us from that system.
If Peirce can work with incoming SEC Chairman Paul Atkins to facilitate approval of in-kind redemptions, then spot bitcoin ETFs can serve as one of the biggest on-ramps to Bitcoin, as the co- Bitwise founder Hong Kim, instead of simply existing as vehicles for speculation.
Bitcoin was born to exist in the wild. He was not born to exist in a Wall Street zoo.
In-kind refunds would allow the bitcoin currently trapped in the zoo to return to its natural habitat.
This article is a Take. The opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.