A Bloomberg analyst suggests that the SEC is likely to approve in-kind redemptions for Bitcoin and Ethereum ETFs. Following recent filings by five issuers, including Invesco Galaxy and Ark 21Shares, there are signs of positive movement regarding regulators' stances. These in-kind redemptions would allow investors to exchange ETF shares for actual tokens, potentially aiding in tax liability management. However, the SEC has expressed concerns about the security risks related to such processes, leading to delays in decision-making. Recent amendments to prospectuses indicate that issuers are gaining traction in discussions with the SEC, signaling hope for the approval of these features. The SEC has postponed its decisions on various ETF proposals, further reflecting ongoing apprehensions about the safety and complexity of in-kind redemptions.

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