Bitcoin has recently surged, fueled by fears of a U.S. dollar collapse and increased interest from billionaires. The cryptocurrency is approaching a key price threshold near $110,000, with some analysts pointing to a potential new phase in the market.
SEC commissioner Hester Peirce revealed at a Bitcoin Policy Institute event that in-kind redemptions for bitcoin and crypto ETFs “are now on the horizon.” Unlike current cash redemptions, in-kind redemptions allow investors to exchange ETF shares directly for the underlying bitcoin, lowering costs and speeding up transactions. This change is expected to attract more institutional investors.
BlackRock, which leads the spot bitcoin ETF market with its $75 billion IBIT fund, requested SEC approval for in-kind creations and redemptions earlier this year. Other firms like Fidelity have made similar requests. Peirce confirmed these filings are progressing through the approval process.
BlackRock manages around $10 trillion in assets and its bitcoin ETF alone holds roughly 3% of the total 21 million bitcoins, valued at nearly $75 billion at current prices. Some experts have expressed concern over BlackRock’s significant influence on the bitcoin network.
Market analyst Alex Kuptsikevich of FxPro said the combined bitcoin and crypto market, at approximately $3.4 trillion, is near a “turning point.” Bitcoin has been testing the $108,000 level but may face selling pressure there. However, sustained buying by medium- and long-term investors suggests a strong likelihood of breaking above $110,000 soon.