BlackRock's iShares Bitcoin Trust ETF may undergo significant changes following a proposed rule change filed with Nasdaq that allows in-kind Bitcoin redemptions instead of cash. This would enable authorized participants, particularly institutional investors, to redeem ETF shares for actual Bitcoin rather than selling the Bitcoin through market makers, which is the current process. This shift occurs in a new regulatory environment under President Donald Trump, following the departure of SEC Chairman Gary Gensler. Analysts suggest that this change could streamline the redemption process, reduce the need for cash conversions, and potentially decrease the selling pressure on Bitcoin prices during times of redemption requests. This development is seen as a positive step for ETF efficiency, although it may not directly impact retail investors. Expected changes in regulatory policies hint at a broader acceptance of cryptocurrency within traditional financial structures.

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