CrossingBridge Pre-Merger SPAC ETF (Nasdaq: SPC) Designates Cash Creation/Redemption the Default Order Type in Effort to Reduce Trading Volatility and Enhance Liquidity

Rhea-AI Summary

CrossingBridge Pre-Merger SPAC ETF (Nasdaq: SPC) has announced a significant structural change to its fund operations by making cash creations and redemptions the default payment method, replacing in-kind transactions. This strategic modification aims to reduce trading volatility and enhance liquidity for market makers and investors.

The change comes in response to observed larger-than-typical disparities between the ETF's market pricing and its NAV. The actively managed fund, which focuses on pre-merger SPACs, seeks to maintain its fixed income characteristics while prioritizing downside risk mitigation. Portfolio Manager and CIO David Sherman emphasized that this adjustment is designed to provide a more consistent and efficient trading experience.

Positive

• Implementation of cash creations/redemptions to enhance trading stability
• Potential reduction in NAV pricing disparities
• Improved liquidity for market makers and investors

Negative

• Current larger-than-typical disparity between market price and NAV
• Existing trading volatility issues requiring structural changes

News Market Reaction

+0.02%

1 alert

+0.02% News Effect

On the day this news was published, SPC gained 0.02%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

PLEASANTVILLE, N.Y., July 25, 2025 /PRNewswire/ -- CrossingBridge Advisors, LLC ("CrossingBridge") announced today that it has made a structural change to the CrossingBridge Pre-Merger SPAC ETF (Nasdaq: SPC) by designating cash creations and cash redemptions as the default standard payment method, rather than in-kind transactions.

This adjustment is intended to help reduce trading volatility and enhance liquidity for market makers and investors. The change aligns with CrossingBridge's ongoing commitment to improving the trading experience for shareholders and maintaining price stability relative to the Fund's net asset value (NAV).

"We've observed that the ETF's market pricing has experienced a larger disparity from NAV than is typical, and we want to be responsive," said David Sherman, Portfolio Manager and CIO of CrossingBridge Advisors. "By shifting to cash creations and redemptions, we aim to provide a more consistent and efficient trading experience for investors—closer to the Fund's historical trading patterns."

The CrossingBridge Pre-Merger SPAC ETF is actively managed and primarily invests in SPACs that have not yet completed a business combination. The Fund seeks to capture the fixed income nature of pre-merger SPACs, while emphasizing downside risk mitigation.

For more information about the CrossingBridge Pre-Merger SPAC ETF, please visit: www.crossingbridgefunds.com/spac-etf

About CrossingBridge Advisors – As of June 30, 2025, CrossingBridge managed in excess of $4.0 billion specializing in investment grade & high yield corporate debt with an emphasis on ultra-short & low duration strategies as well as credit opportunities. The Firm's core philosophy is "Return of Capital is more important than Return on Capital".

The prospectus for the CrossingBridge Pre-Merger SPAC ETF can be found by clicking here.

Investing involves risk. Principal loss is possible.

CrossingBridge Advisors, LLC is the Adviser to the CrossingBridge Pre-Merger SPAC ETF, which is distributed by Foreside Fund Services, LLC.

View original content to download multimedia:https://www.prnewswire.com/news-releases/crossingbridge-pre-merger-spac-etf-nasdaq-spc-designates-cash-creationredemption-the-default-order-type-in-effort-to-reduce-trading-volatility-and-enhance-liquidity-302514101.html

SOURCE CrossingBridge Advisors, LLC

FAQ

What changes did CrossingBridge Pre-Merger SPAC ETF (SPC) announce on July 25, 2025?

CrossingBridge announced switching to cash creations and redemptions as the default payment method, replacing in-kind transactions, to reduce trading volatility and enhance liquidity.

Why did CrossingBridge make changes to the SPC ETF structure?

The changes were made because the ETF was experiencing larger-than-typical disparities between market pricing and NAV, aiming to provide more consistent trading experiences.

What is the investment strategy of the CrossingBridge Pre-Merger SPAC ETF?

The ETF is actively managed and primarily invests in SPACs that haven't completed business combinations, focusing on capturing fixed income characteristics while emphasizing downside risk mitigation.

How will the new cash creation/redemption structure affect SPC ETF investors?

The new structure aims to provide investors with reduced trading volatility, enhanced liquidity, and more consistent pricing relative to the fund's NAV.