BlackRock's iShares Bitcoin Trust ETF is poised for a significant update following a proposed rule change by Nasdaq. The adjustment would facilitate in-kind Bitcoin redemptions for the ETF, allowing large institutional investors to redeem shares for Bitcoin directly instead of cash. This move marks a departure from the previous requirement established when Bitcoin ETFs were first approved for trading in January 2024. Under the newly inaugurated President Donald Trump, industry regulations are shifting, aided by the repeal of the SEC's SAB 121, which had dissuaded banks from holding cryptocurrencies. Bloomberg ETF analyst James Seyffart noted that this new process could streamline redemptions and reduce overall Bitcoin selling when ETFs face redemption requests. While the changes mainly affect institutional investors, the efficiency of ETF trading is expected to improve, making them even more appealing. This shift reflects broader trends in crypto regulation and market efficiency, signaling a progressive approach within the evolving cryptocurrency landscape.

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