During a recent episode of the Coinage podcast, guest SEC Commissioner Hester Peirce expressed her willingness to reevaluate in-kind redemptions for spot bitcoin ETFs.
(For those who may not be acquainted with the term “in-kind redemption,” it denotes the capability to withdraw the bitcoin acquired through an ETF into your own custody. Essentially, it transforms a bitcoin IOU into the actual asset.)
BREAKING: SEC Commissioner Hester Peirce hints at new pro-crypto modifications impending at the SEC
ETF in-kind redemptions and the potential for ETF issuers to start staking likely occurring "early on"
Both ETFs currently exceed $100B in AUM pic.twitter.com/g3jtbuBeWU
— Coinage (@coinage_media) December 20, 2024
This brings me joy, as bitcoin was not intended to remain confined within the confines of the antiquated system. It was designed to liberate us from that framework.
If Peirce collaborates with the forthcoming SEC Chair, Paul Atkins, to enable the endorsement of in-kind redemptions, then the spot bitcoin ETFs could act as some of the largest gateways to Bitcoin, as Bitwise co-founder Hong Kim articulated, rather than merely serving as speculative instruments.
Bitcoin was created to thrive in the open. It was not meant to exist in a Wall Street menagerie.
In-kind redemptions would grant the bitcoin currently ensnared within the menagerie the opportunity to revert to its natural environment.
This article is a Take. The views expressed are solely those of the author and do not necessarily signify those of BTC Inc or Bitcoin Magazine.
