The U.S. Securities and Exchange Commission (SEC) is evaluating a proposed change in BlackRock’s Bitcoin ETF that introduces in-kind redemptions.
Proposed Change in Redemption Process
The Nasdaq stock exchange, representing BlackRock, submitted an amended rule filing to the SEC to adjust the redemption and creation mechanism of the iShares Bitcoin Trust. This change would allow authorized participants to conduct in-kind transactions instead of solely relying on cash redemptions.
SEC’s Next Steps
The SEC opened a 21-day comment period following the proposal’s publication in the Federal Register. Based on feedback, the agency can approve the change, reject it, or continue the evaluation process.
Impact on the Bitcoin ETF Market
This proposal does not affect redemption access for retail investors but applies only to authorized participants managing fund creations and redemptions.
The proposed change in redemption process reflects ongoing adjustments in the evolving Bitcoin ETF market.
