Morgan Stanley has introduced in-kind subscriptions for its spot Bitcoin ETF, according to Bitcoin Magazine. The new feature lets authorized participants use Bitcoin directly to create and redeem fund shares, replacing the previous cash-only method. In-kind mechanisms can reduce market impact costs and help the fund more closely track Bitcoin’s price.
From a tax perspective, in-kind creation avoids triggering taxable events that can arise from cash transactions, potentially delivering better after-tax outcomes for investors. The update comes amid growing competition among spot Bitcoin ETF issuers to refine product features and cater to institutional demand for efficient crypto exposure.
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