Before jumping in... The Taxable Wealth Slack Group is live and I'll be sending rolling invitations over the next handful of days.
It's possible to contribute self-custodied bitcoin to certain flavors of exchange-traded products.
To learn why that might be sensible, check out the latest episode of The Albatross with Cliff Cornell, financial planner at Bona Fide Wealth, and Teddy Fusaro, President of Bitwise Asset Management. One compelling reason is making sure a non-financial spouse knows where the keys are. But check out the episode for 9 reasons.
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When the Securities and Exchange Commission first approved spot bitcoin ETFs in January 2024, creations and redemptions were cash only.
ETFs execute trades of their own, but they typically get funded and redeemed with cash and securities through the creation/redemption process with authorized participants (APs), typically large broker-dealers, like Jane Street.
In July 2025, the SEC approved in-kind creation/redemption, meaning that authorized participants could contribute and redeem spot bitcoin directly to/from a spot bitcoin ETF.
This opened the door for private investors to work with APs to do the same.