Nasdaq Files to Allow In-kind Redemptions on BlackRock’s Bitcoin ETF

BlackRock, through Nasdaq, is considering a potential change to the way it handles redemptions for its Bitcoin exchange-traded fund.

Instead of using cash, the fund may allow for in-kind redemptions, as stated in an amended rule filing made by Nasdaq on Friday. This would apply specifically to the iShares Bitcoin Trust.

The new filing states that the proposed change would offer an alternative to the current cash redemption process.

This decision was likely influenced by the technical details discussed among firms prior to the SEC’s approval of spot Bitcoin ETFs over a year ago.

Originally, the SEC favored a cash model that required BlackRock to sell stored Bitcoin and return the cash to the investor.