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coinpedia 2025-01-25 07:39:55

Nasdaq’s In-Kind Bitcoin Redemptions Could Be Good for BlackRock ETF – Here’s How

The post Nasdaq’s In-Kind Bitcoin Redemptions Could Be Good for BlackRock ETF – Here’s How appeared first on Coinpedia Fintech News Yesterday, Nasdaq submitted a proposal to change the rules for in-kind Bitcoin redemptions in BlackRock’s Bitcoin ETF. The aim is to make the redemption process simpler and to align with regulatory changes under the newly appointed Trump administration. A Step Toward Easier Bitcoin ETF Redemptions On January 24, Nasdaq officially filed the 19b-4 form to seek approval for the rule change that would affect BlackRock’s Bitcoin ETF, a major investment fund based in New York. If the proposal is approved, institutional investors will be able to redeem shares directly for Bitcoin, instead of selling Bitcoin through market makers to raise cash. This change would streamline the redemption process by reducing the steps and parties involved. It also aims to lower the selling pressure on Bitcoin during redemption events, which could have a positive impact on Bitcoin’s price. Experts See Positive Impact on the Crypto Industry The proposal has been welcomed by experts in the field, including Bloomberg analyst James Seyffart. Seyffart believes the change could have a significant impact on the crypto industry. He also points to the repeal of SAB 121 as an important factor in making this change possible. SAB 121 had previously discouraged banks from providing crypto custody services. Trump’s Pro-Crypto Policies Support Growth This proposal is part of a broader push for crypto-friendly policies under the Trump administration. During his campaign, Trump positioned himself as a supporter of the crypto industry, promising to introduce policies that would help it grow. After winning the election against Kamala Harris on November 5, he wasted no time implementing key measures, such as creating a crypto task force to develop a clear regulatory framework and repealing the SAB 121 guideline. In conclusion, Nasdaq’s proposal to update BlackRock’s Bitcoin ETF marks a significant step in aligning the ETF market with evolving crypto regulations.

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