Nasdaq recently filed a proposed rule change that could allow BlackRock's iShares Bitcoin Trust ETF to offer in-kind Bitcoin redemptions instead of cash, a significant shift from the current method. This change would let authorized institutional investors redeem ETF shares for the underlying Bitcoin directly, rather than selling Bitcoin on the market to deliver cash. This new rule aims to streamline the redemption process, simplifying operations for authorized participants. Additionally, the repeal of Staff Accounting Bulletin No. 121 by the SEC has also contributed to this change, as it needed adjustments to the regulatory framework governing cryptocurrency assets. Overall, these developments may lead to more efficient trading for ETFs and potentially reduce the amount of Bitcoin sold during redemption requests, which is seen as beneficial for the cryptocurrency market.

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