Nasdaq Proposes Rule Change for In-Kind Redemptions of BlackRock ETF
Nasdaq has proposed a rule change to enable in-kind creation and redemption for the BlackRock iShares Bitcoin Trust (IBIT), as filed with the U.S. Securities and Exchange Commission (SEC).
The key points are:
- This process allows authorized participants (APs) to buy and redeem shares directly with bitcoin (BTC).
- It enhances efficiency by enabling APs to respond quickly to ETF demand without cash transactions.
- Retail investors are excluded from participating in this process.
- Initially, the SEC approved spot bitcoin ETFs, including IBIT, with cash redemptions instead of bitcoin.
- Industry analysts criticized the initial decision, citing regulatory concerns about brokers handling actual bitcoin.
- BlackRock's IBIT has garnered nearly $40 billion in inflows in its first year, marking the most successful ETF debut.