Swap Real Crypto for ETF Shares: Invesco Galaxy's Efficiency Upgrade
Published Date: 3/18/2025
Notice
Summary
The Cboe BZX Exchange wants to update the Invesco Galaxy Bitcoin and Ethereum ETFs so investors can trade shares by swapping actual crypto assets instead of just cash. This change makes buying and selling smoother and could save money on fees. If approved, this new way of trading could start soon, helping crypto fans and investors get more flexible with their ETFs.
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Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Bitcoin ETF: Allow In-Kind Trades
If approved, the Invesco Galaxy Bitcoin ETF would allow authorized participants to create or redeem Creation Baskets of 5,000 shares by delivering or receiving actual bitcoin (in-kind) instead of only cash. Cash creation orders must be placed by 2:30 p.m. Eastern Time and in-kind creation orders must be placed by 4:00 p.m. Eastern Time on the business day the order is received.
Ethereum ETF: Allow In-Kind Trades
If approved, the Invesco Galaxy Ethereum ETF would allow authorized participants to create or redeem Creation Baskets of 5,000 shares by delivering or receiving actual ether (in-kind) instead of only cash. Cash creation orders must be placed by 2:30 p.m. Eastern Time and in-kind creation orders must be placed by 4:00 p.m. Eastern Time on the business day the order is received.
Creation/Redemption Efficiency Benefit
The Exchange states that allowing in-kind creations and redemptions would let authorized participants source or deliver bitcoin or ether themselves, which could reduce the Trusts' direct market impact, increase efficiency, and ultimately benefit end investors in the Trusts. The change is described as making the creation/redemption process more efficient and may lessen how the Trusts affect the market.
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