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

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 Kamala Harris   Kamala Harris is an American woman politician and former Attorney General. She is the former (49th) Vice President of the United States. She has been known for her vocal stance on cryptocurrency adoption and has been backed by several crypto leaders like Chris Larsen.   During her tenure as Vice President, she has reached out to crypto-related companies, such as Coinbase and Circle, and lawmakers at the White House to assist in formulating clear regulations and policy frameworks for cryptocurrency adoption.   Quick Facts   Full name Kamala Devi Harris Birth 20-10-1964, Oakland, California, United States Nationality American Education BA from Howard University Famous for Active Politics   Kamala Harris - Career Highlights & Events   2010 – Elected Attorney General of California   2016 – Became U.S. Senator for California   2020 – Elected 49th VP of the United States of America in the general elections   2022 – Supported digital equity and broadband inclusion initiatives   2024 – Advocated tech innovation and responsible AI/crypto regulation   Vice President 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.