BlackRock's iShares Bitcoin Trust ETF may undergo a significant change following a proposed rule change filed by Nasdaq. This change would allow authorized participants to redeem ETF shares for the underlying Bitcoin instead of cash, a notable shift from previous requirements. The current process involves institutions having to sell Bitcoin via a market maker to deliver cash, but the new rule could streamline redemptions and reduce overall Bitcoin selling during redemption requests. The SEC recently rescinded Staff Accounting Bulletin No. 121, which added complexity to the accounting of crypto assets, signaling a shift in regulatory stances under new leadership. The change is expected to improve the trading efficiency of Bitcoin ETFs, but may not significantly impact individual retail investors directly. Analyst James Seyffart noted that the repeal of the SAB 121 guidance might connect with the proposed ETF changes, hinting at the potential for a more straightforward regulatory environment for cryptocurrencies under the new SEC leadership.

Source 🔗