On a recent episode of the Coinage podcast, guest SEC Commissioner Hester Peirce said that she is open to reconsidering in-kind redemptions for spot bitcoin ETFs.<\/p>\n (For those who aren\u2019t familiar with the term \u201cin-kind redemption,\u201d it refers to the ability to withdraw the bitcoin you\u2019ve purchased via an ETF into your own custody. In essence, it turns a bitcoin IOU into the real thing.)<\/p>\n BREAKING: SEC Commissioner Hester Peirce previews new pro-crypto changes coming to the SEC<\/p>\n ETF in-kind redemptions and ability for ETF issuers to begin staking likely done “early on”<\/p>\n Both ETFs now have more than $100B in AUM pic.twitter.com\/g3jtbuBeWU<\/a><\/p>\n \u2014 Coinage (@coinage_media) December 20, 2024<\/a><\/p><\/blockquote>\n This makes my heart happy, as bitcoin wasn\u2019t designed to exist trapped within the wrappers of the old system. It was built to set us free from that system.<\/p>\n If Peirce can work with the incoming SEC Chair, Paul Atkins, to facilitate the approval of in-kind redemptions then the spot bitcoin ETFs can serve as some of the biggest on-ramps to Bitcoin, as Bitwise co-founder Hong Kim put it<\/a>, as opposed to simply existing as speculation vehicles.<\/p>\n Bitcoin was born to exist in the wild. It wasn\u2019t born to exist in a Wall Street zoo.<\/p>\n In-kind redemptions would allow the bitcoin currently trapped within the zoo the ability to return to its natural habitat.<\/p>\n![](\"https:\/\/bitcoinmagazine.com\/.image\/c_fit%2Ch_800%2Cw_1200\/MjExNTA5MDU5OTMxNjEzMTcy\/takes-banner.png\")
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