- The cryptocurrency exchange-traded funds (ETF) sector is heating up.
- BlackRock has applied for a rule change to allow in-kind redemptions.
- Grayscale has filed for Litecoin and Solana ETFs.
The cryptocurrency ETF market is gaining momentum with a slew of new filings and updates to existing products. BlackRock, a leading provider of ETFs, has submitted a request to adjust its redemption process for its iShares Bitcoin ETF (IBIT). Meanwhile, Grayscale has filed for Litecoin and Solana ETFs, further diversifying its offerings.
According to reports, BlackRock seeks a rule change to allow in-kind redemptions for its iShares Bitcoin ETF (IBIT). If approved, the new process would permit the direct transfer of Bitcoin to investors during redemptions, eliminating the need to convert holdings into cash.
This proposed change could streamline Bitcoin ETF operations, offering institutional investors greater efficiency and lower tax liabilities. By adopting this alternative redemption mechanism, BlackRock seeks to set a precedent that could influence other ETF issuers and further integrate digital assets into traditional financial markets.
Grayscale Expands with Litecoin and Solana ETF Filings
In the meantime, Grayscale has filed for a Litecoin and Solana ETF alongside other products. The filing makes Grayscale the second company to file for a Litecoin ETF after Canary Capital’s October application.
Related: SEC Responds to Litecoin ETF Filing as Market Eyes Approval
This surge in ETF filings comes close on the heels of Gary Gensler’s resignation as SEC chair, creating a more optimistic environment for crypto-focused financial products.
Market Impact of ETF Filings
Despite the flurry of filings, the cryptocurrency market has shown limited reaction. Related assets, such as LTC and SOL, have experienced minor price fluctuations within tight trading ranges, reflecting the overall subdued market conditions.
Litecoin is currently trading at $121.62, up 3% over the past 24 hours but stays relatively stable compared to some of its peers. Volume trends suggest steady accumulation since November, with recent rebounds after a slowdown in early January.
Related: Gary Gensler, Jaime Lizarraga Leave SEC; Crypto Community Awaits Next Moves
Analysts point to socio-political factors, including developments under Donald Trump’s administration, as key influences on the crypto market. A more relaxed regulatory environment could pave the way for additional ETF approvals and potential price volatility.
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