Encryption mom Hester Peirce: Bitcoin ETF physical redemption mechanism "is already under review process"

The SEC ( announced on 4/14 that it will postpone a series of proposals related to the staking and physical redemption of Crypto Assets ETFs. Now, on 6/25, at the "2025 Bitcoin Policy Summit" ) held in Washington, SEC commissioner Hester Peirce, commonly known as "crypto mom," stated that this matter is currently under "review."

The SEC approved the Bitcoin ETF last year, but it can only be "cash redeemed".

The SEC approved the first batch of spot Bitcoin ETFs for listing on January 11 of last year. However, at that time, it was stipulated that all subscriptions and redemptions could only be conducted in "cash". This means that large institutional players like BlackRock must first convert their stored BTC into cash before returning it to investors.

However, market participants believe that this practice will increase operational costs and reduce ETF trading efficiency.

BlackRock submitted a proposal for "physical creation and redemption," and other institutions are following suit.

In January of this year, BlackRock submitted a 19b-4 form through Nasdaq, officially proposing to the SEC to adopt a "physical" (In-Kind) method for purchasing and redeeming Bitcoin ETF, allowing for exchanges in Bitcoin without the need to convert to cash, which would make fund management and liquidity performance more efficient.

Subsequently, other institutions followed suit and gradually submitted similar applications.

Crypto Assets Mom said this matter is "on the way," and Bloomberg analysts also support it.

On June 26, SEC Republican member Hester Peirce, commonly known as "Crypto Mom," was asked at the 2025 Bitcoin Policy Summit whether the SEC would allow such entities to purchase and redeem. Peirce responded:

"This is indeed something that will happen at some point in the future, and currently, these proposals are under review."

Bloomberg ETF analyst James Seyffart pointed out as early as January this year that if the SEC allows physical redemptions, it will significantly improve the trading efficiency of Bitcoin ETFs, and the fund will operate more smoothly, better reflecting market prices.

(The SEC's decision on the staking and physical redemption of crypto ETFs has been postponed until June, as the U.S. regulatory framework undergoes a comprehensive overhaul)

This article Crypto Mom Hester Peirce: The physical redemption mechanism for Bitcoin ETF "is already under review" was first published in Chain News ABMedia.