
How Bitcoin ETF creations work, and who holds the coins
How US spot Bitcoin ETF shares are created in baskets of 40,000 shares, for cash or bitcoin, who holds the coins, and why a holder cannot redeem them.

Karthik Subramanian is a founder, writer, and technology consultant with nine years in the crypto ecosystem. He covers token economics, L1/L2 infrastructure, DeFi protocols, wallets/custody, and the bridge between crypto and forex—broker technology, liquidity, and macro drivers. Karthik’s writing focuses on clear, practical frameworks that help professionals evaluate new products and on-chain innovation alongside FX market realities.

How US spot Bitcoin ETF shares are created in baskets of 40,000 shares, for cash or bitcoin, who holds the coins, and why a holder cannot redeem them.