A Most Delightful Scandal: Wall Street’s Crypto Windfall Unveiled! 🎩💸

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‘Tis a truth universally acknowledged, that a financial market in possession of a good fortune must be in want of an ETF. And lo! Amendments filed by esteemed providers hint at a most tantalizing shift toward in-kind crypto redemptions.

The SEC, that ever-watchful guardian of propriety, initially permitted only cash redemptions for Bitcoin and Ethereum ETFs—how very pedestrian for such modern treasures.

Of Authorized Participants and Cryptographic Entanglements

Now comes news most stirring: Ark 21Shares, Fidelity, and their ilk seek to exchange BTC and ETH directly for ETF shares! Imagine, instead of dull cash, one might tender actual digital tokens! How very romantic.

“More positive signs regarding Bitcoin & Ethereum ETFs obtaining the ability to do in-kind creation and redemption,” penned Mr. Seyffart with all the drama of a Regency-era pamphleteer. “This indicates to me that there is positive movement and likely fine tuning happening with the SEC.”

Should this scheme gain favor, ETFs might soon trade crypto like gentlemen of old exchanging fine brandy—though alas, only Wall Street’s most exclusive clubs shall partake.

The Great Hong Kong Gambit

Meanwhile, our cousins across the sea in Hong Kong prepare to waltz ahead with in-kind redemptions by Q2! 🎉 One wonders if the SEC shall blush at being outmaneuvered by foreign dancers.

“Looks like Hong Kong is going to allow in-kind creations… unlike US which is cash creations only,” quipped Mr. Balchunas, as though announcing a particularly juicy ton scandal.

Retail Investors: The Uninvited Guests

Yet fear not, dear common investors! While Wall Street’s grandest houses feast on crypto banquets, you may still nibble crumbs from their tables. For what need have you of actual tokens when “tight spreads” make such excellent consolation prizes?

“Would this imply retail have a way to redeem in kind?” mused a hopeful soul online. Alas, the answer rings clear as a bell at Dusk: brokers shall hoard the dance cards.

Still, Mr. Seyffart assures us this change “treats crypto ETPs the same as other ETPs are treated”—as if comparing a pirate’s treasure map to a lady’s embroidery pattern!

“This already exists for some Gold ETFs,” Seyffart revealed, as though confessing a secret love affair between finance and tradition.

So let us raise a glass to progress! 🥂 While institutions sharpen their crypto cutlasses, we may all take comfort in knowing spreads remain tighter than a corset at Almack’s. Perhaps someday… but not today, dear reader.

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2025-07-23 13:42