NASDAQ FILES FOR IN-KIND REDEMPTIONS FOR BLACKROCK SPOT BTC ETF (IBIT): SEC FILING
NASDAQ has filed a proposed rule change to allow in-kind creation and redemption for the BlackRock iShares Bitcoin Trust (IBIT), according to a friday Filing with the US Securities and Exchange Commission (SEC).
The process allows large institutional investors, called Authorized Participants (APS), to buy and redeem fund shares directly in Bitcoin (BTC).
This is considered more efficient because it allows APs to closely monitor the demand for the ETF and act quickly by buying or selling fund shares without cash involved in the process. Retail investors are not eligible to participate.
When the SEC first approved spot Bitcoin ETFs including Ibit in January, the agency allowed the funds to be launched with cash redemptions, rather than bitcoin.
“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,” Bloomberg Intelligence ETF analyst James Seyffart write to x. “Basically (they) don’t want brokers to handle the actual bitcoin.”
BlackRock’s ibit is the largest spot BTC ETF on the market, attractive Nearly $40 billion in inflows in its first year, making it the most successful ETF debut ever.
