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coinpedia 2025-01-25 07:39:55

BlackRock Bitcoin ETF Set to Benefit from Nasdaq’s In-Kind Redemption Proposal

The post BlackRock Bitcoin ETF Set to Benefit from Nasdaq’s In-Kind Redemption Proposal appeared first on Coinpedia Fintech News Yesterday, Nasdaq submitted a proposal seeking a rule change to enable in-kind BTC redemptions for iShares ETF. The proposal, which aims to simplify the redemption process, aligns with regulatory shifts under the newly inducted Trump administration. Nasdaq’s Proposal for BlackRock Bitcoin ETF It was on January 24 that Nasdaq officially filed the 19b-4 form seeking the rule change for the Bitcoin ETF of BlackRock, an investment giant based in New York. If the proposal is approved, it will enable institutional investors to redeem shares for Bitcoin directly. Currently, ETFs require Bitcoin to be sold via market makers to provide cash. Not only does the proposal promise to reduce steps and parties involved in the redemption process, but it also does assure to minimise Bitcoin selling pressure during redemption events. What Experts Think About Nasdaq’s Move for iShares ETF? Many experts, such as Bloomberg analyst James Seyffart, have responded positively to the proposal submitted by Nasdaq for BlackRock’s ETF. Seyffart states that the proposed change could have far-reaching effects on the crypto industry. Additionally, he notes that the repeal of SAB 121 has played a crucial role in this change. Regulatory Shifts Under Trump Administration During the US election campaign itself, Donald Trump, who presented himself as a pro-crypto leader, assured to introduce policies necessary to enable the growth of the cryptocurrency industry. On November 5, Trump defeated Kamala Harris and won the White House power seat with an impressive majority. Immediately after his inauguration, he introduced at least two key policies: the creation of a crypto task force to establish a clear crypto regulation framework, and the withdrawal of the controversial SAB 121 guideline, which discouraged banks from offering crypto custroy services. In conclusion, Nasdaq’s proposal to update BlackRock’s Bitcoin ETF marks a significant step in aligning the ETF market with evolving crypto regulations. By simplifying the redemption process and supporting in-kind BTC redemptions, this initiative could further integrate Bitcoin into institutional finance, benefiting both the industry and investors.

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