SEC seeks feedback on in-kind creations and redemptions for WisdomTree Bitcoin Fund

The U.S. Securities and Exchange Commission is seeking feedback on whether to change rules to allow the WisdomTree Bitcoin Fund to allow in-kind creations and redemptions.

The request follows prior delays and requests for feedback on rule-making decisions for in-kind creations and redemptions for cryptocurrency ETFs, including BlackRock's iShares Bitcoin Trust ( IBIT ), the VanEck Bitcoin Trust, and the VanEck Ethereum Trust, The Block previously reported. 

Regarding the WisdomTree Bitcoin Fund, the SEC invites individuals to submit written data, views or arguments on whether the rule change should be approved or disapporved within 21 days, according to a Monday release from the agency. 

"Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change," the SEC wrote. "Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change." 

The WisdomeTree Bitcoin Fund (BTCW) is a spot Bitcoin exchange-traded fund (ETF) initially approved in January 2024. In-kind redemptions enable investors to redeem their stake in the fund using the underlying asset — bitcoin, in this case — rather than cash.