Nasdaq Seeks In-Kind Redemption Approval for BlackRock's Bitcoin ETF
Finance/Markets

Nasdaq Seeks In-Kind Redemption Approval for BlackRock's Bitcoin ETF

Nasdaq has submitted a request to the SEC to allow in-kind creation and redemption for BlackRock's Bitcoin ETF, which could streamline processes for institutional investors.

Summary

Nasdaq is proposing a rule change to the SEC that would allow for in-kind creation and redemption for the BlackRock iShares Bitcoin Trust (IBIT). This marks a shift from the cash-only mechanism previously approved for spot Bitcoin ETFs.

Key Points

  • Nasdaq has filed a proposed rule change with the SEC to facilitate in-kind trading involving Bitcoin (BTC).
  • The current mechanism approved last January only allowed cash transactions.
  • The change is seen as beneficial for institutional investors who can quickly react to demands in the crypto market.

Quote

“It should have been approved in the first place but Gensler/Crenshaw didn’t want to allow it for a whole host of reasons they gave,” stated James Seyffart, highlighting the initial resistance to involving actual Bitcoin.

Additional Info: The BlackRock IBIT has seen nearly $40 billion in inflows during its first year, underscoring its strong market position.

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