Emre Yumlu 
BlackRock has made a notable move in the crypto market by filing for a transition to the in-kind redemption model for its Ethereum Trust product. With this development, the company could gain the ability to redeem ETH directly. In other words, investors will be able to exchange ETF shares directly for Ethereum instead of cash.
What Does the In-Kind Model Mean?
In-kind redemption is a mechanism of great significance in the spot crypto ETF market. In this system, investors can receive the underlying crypto asset (in this case, ETH) instead of cash when selling their ETF shares. This eliminates extra costs, conversion delays, and the complexity of cash transactions. If the SEC approves this application, ETF operations will become more efficient and liquidity will increase significantly.
With this move, BlackRock joins Invesco Galaxy, VanEck, WisdomTree, and 21Shares, who have also submitted similar in-kind amendment applications for their Ethereum ETFs. There are also similar requests still under SEC review for Bitcoin ETFs.
BlackRock Awaits SEC Decision
So far, the U.S. Securities and Exchange Commission (SEC) has not made a final decision on these types of applications. In April, decisions on in-kind applications submitted by VanEck and WisdomTree for both Bitcoin and Ethereum ETFs were postponed to June 3. Bloomberg ETF analysts Eric Balchunas and James Seyffart expect the SEC to approve the in-kind model within this year.
Seyffart noted that the final deadline for the first in-kind application for Ethereum ETFs is November 10, 2025. If approval comes by then, it will be a major turning point for the ETF market.
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