BlackRock Bitcoin ETF Set to Benefit from Nasdaq’s In-Kind Redemption Proposal
Yesterday, Nasdaq submitted a proposal to change its rules to enable physical BTC redemptions for the Ishares ETF. The proposal aims to streamline the redemption process, aligning with regulatory shifts under the newly elected Trump administration.
Nasdaq Recommends BlackRock Bitcoin ETF
Nasdaq officially filed a Form 19b-4 on January 24 requesting changes to Blackrock’s Bitcoin ETF, a New York-based investment giant.
If the proposal is approved, it would enable institutional investors to directly exchange shares for Bitcoin. Currently, the ETF requires the sale of Bitcoin through market makers to provide cash.
Not only is the proposal expected to reduce the steps and parties involved in the redemption process, but it will also ensure that selling pressure on Bitcoin during a redemption event is minimized.
What do experts think of Nasdaq’s move on Ishares ETF?
Many experts, including Bloomberg analyst James Seyffart, responded favorably to Nasdaq’s proposal for BlackRock’s ETF. Seyffart noted that the proposed changes could have far-reaching consequences for the cryptocurrency industry. Furthermore, he noted that the repeal of SAB 121 played a crucial role in this change.
Regulatory shifts under the Trump administration
During the US election campaign itself, Donald Trump, the pro-Crypto leader, pledged to introduce the necessary policies to enable the cryptocurrency industry to develop.
On November 5, Trump defeated Kamala Harris and won the White House momentum seat with an impressive majority.
Immediately after his inauguration, he introduced at least two key policies: establishing a crypto task force to establish a clear crypto regulatory framework and withdrawing the controversial SAB 121 guidance, which prevented banks from offering crypto custody services.
In summary, Nasdaq’s proposal to update the BlackRock Bitcoin ETF is a sign of aligning the ETF market with evolving crypto regulations. By simplifying the exchange process and supporting physical BTC redemptions, the program can further integrate Bitcoin into institutional finances, benefiting the industry and investors.
