Nasdaq Proposes Rule Change for BlackRock’s Bitcoin ETF

Nasdaq, the world’s second-largest stock exchange, has submitted an application on behalf of BlackRock to amend the structure of the iShares Bitcoin Trust (IBIT) to allow for in-kind redemptions.

“The exchange proposes to amend the process for the creation and redemption of fund shares to permit in-kind transfers of bitcoin,” the application states. “The proposed in-kind transfer process will serve as an alternative to the current cash-based method.”

This change would enable investors to redeem their holdings directly in bitcoin. Previously, redeeming fund shares required selling the coins and returning cash. The new approach aims to streamline the process, making it more convenient and efficient.

The proposal now awaits approval from the SEC. If accepted, it could significantly enhance the appeal of a spot bitcoin ETF to market participants, according to Bloomberg Intelligence analyst James Seyffart.

The total value of bitcoins managed by IBIT stands at $60.6 billion, according to SoSoValue.

Earlier, BlackRock CEO Larry Fink outlined a condition under which bitcoin could reach $700,000.