The BlackRock iShares Bitcoin Trust ETF is set to undergo significant changes with a proposed rule change allowing for in-kind Bitcoin redemptions, as filed by Nasdaq. This would enable large institutional investors, known as authorized participants, to exchange ETF shares for the underlying Bitcoin directly, rather than selling it for cash through market mechanisms. This shift is part of broader regulatory changes following the SEC's recent repeal of Staff Accounting Bulletin 121, which had imposed liabilities for crypto assets held on behalf of users. These developments are expected to enhance the efficiency of ETF transactions and potentially reduce Bitcoin sell-offs triggered by redemption requests, thus benefiting the market structure. This proposal comes amidst a regulatory environment under newly elected President Donald Trump and a transition in the SEC's leadership towards more crypto-friendly policies. Analysts believe the change could lead to better price stability and market dynamics for Bitcoin ETFs.

Source đź”—