BlackRock's iShares Bitcoin Trust ETF may see changes with a proposed rule alteration filed by Nasdaq, allowing in-kind Bitcoin redemptions rather than cash. This new option would enable institutional investors to trade shares of the ETF directly for the underlying Bitcoin, streamlining the redemption process. Previously, participants were required to sell Bitcoin through market makers and convert it to cash. The U.S. Securities and Exchange Commission (SEC) has also made earlier changes to its regulatory frameworks, potentially influencing ETF operations. The recent repeal of Staff Accounting Bulletin 121, which complicated the custody of digital assets, could further streamline the ETF redemption process. Analysts believe that this development might lead to increased efficiency in ETF trading as the need for cash redemptions decreases, possibly stabilizing the Bitcoin market during sell-offs resulting from redemption requests. The proposal's acceptance remains pending as the market anticipates further changes under the new administration.

Source đź”—