CBOE Proposes Rule Change for ARK 21Shares BTC-ETF and ETH-ETF

The Chicago Board Options Exchange (CBOE), on behalf of ARK Invest and 21Shares, has submitted a proposal to amend the structure of the ARK 21Shares Bitcoin ETF (ARKB) and 21Shares Core Ethereum ETF (CETH) to allow for in-kind asset redemption.

Cboe files 19b-4 to permit in-kind creations & redemption on BOTH the ARK 21Shares Bitcoin ETF & 21Shares Core *Ethereum* ETF… pic.twitter.com/lQklURfNbU

— Nate Geraci (@NateGeraci) January 27, 2025

Currently, all similar products only allow for cash redemption. In other words, investors will be able to redeem directly (in-kind) in the underlying asset.

At present, redeeming fund shares requires selling coins and returning cash. The new approach would eliminate such operations, making the process more convenient and efficient.

According to Bloomberg analyst James Seyffart, the adoption of the proposal would enhance the appeal of crypto ETFs for market participants.

The total assets under management for ARKB amount to $5.1 billion, and for CETH — $16.8 million, according to SoSoValue.

Previously, BlackRock CEO Larry Fink outlined a condition under which Bitcoin could reach $700,000.

Earlier in January, the Nasdaq exchange submitted a similar proposal regarding rule changes for BTC-ETF on behalf of this investment giant.