American investment firm BlackRock has filed a proposal with the US Securities and Exchange Commission for in-kind creation and redemption of its iShares Ethereum Trust ETF (ETHA), following a similar application for its Bitcoin spot ETF.
BlackRock's amendment to the S-1 form of the Ethereum spot ETF ETHA would enable an in-kind creation and redemption process for the fund, allowing direct exchange of shares for the base cryptocurrency between investors and ETF issuers.
The proposed in-kind creation/redemption system has risks highlighted by BlackRock, including potential vulnerabilities due to Quantum computing advancements, exchange collapses, governance policy issues, and volatility, among others.
SEC is expected to provide a response by November 10, 2025, regarding BlackRock's request for in-kind creation and redemption for its Ethereum ETF. Ethereum's price stands at $2,347 with a 28.38% gain in the past week and a 48.38% rise on its monthly chart.