Nasdaq Files for Rule Change in BlackRock Spot Bitcoin ETF
According to a filing made to the US Securities and Exchange Commission (SEC) on Friday, Nasdaq has proposed a rule change to allow for in-kind creation and redemption in the BlackRock iShares Bitcoin Trust (IBIT).
This process would enable authorized participants (APs), who are large institutional investors, to purchase and redeem shares of the fund directly with Bitcoin.
This method is seen as more efficient as it allows APs to closely monitor the demand for the fund and respond quickly by buying or selling shares without involving cash. However, this option is not available to retail investors.
The SEC initially approved spot Bitcoin ETFs, including IBIT, in January of last year, but allowed them to launch with cash redemption instead of Bitcoin. Some analysts, such as Bloomberg Intelligence’s ETF expert James Seyffart, believe that the funds should have been approved with in-kind creation and redemption options from the start.
