On April 1st, BlackRock and the US Securities and Exchange Commission (SEC) engaged in a meeting focused on adjusting workflows for crypto exchange-traded products (ETPs). This dialogue involved the newly formed SEC Crypto Task Force. Attendees explored structural and operational changes for crypto ETFs, specifically examining the potential of in-kind redemptions. This approach allows authorized participants to trade ETF shares for actual underlying assets like Bitcoin instead of cash. The meeting suggests regulators may be receptive to this model, potentially streamlining procedures while reducing costs. BlackRock, a major player in the crypto market, actively participated. The firm boasts over 574,000 Bitcoin holdings in its IBIT fund and more than 1.1 million Ethereum in its Ether ETF. Senior representatives from BlackRock’s regulatory, product, and ETF teams were involved in discussions about modifying ETP workflows to integrate in-kind systems, which can improve efficiency and lower expenses. Since the SEC approved spot Bitcoin ETFs in January 2024, they have mandated cash-only redemption models due to concerns regarding custody and compliance risks.