Nasdaq has filed a request on behalf of BlackRock to allow in-kind creation and redemption for its iShares Bitcoin Trust (IBIT), which analysts say should have been permitted from the start. This change would let Authorized Participants (APs) create and redeem shares using Bitcoin instead of cash, enhancing efficiency and transparency.
The proposed rule change, filed with the SEC on Jan. 24, aims to streamline ETF operations by reducing transaction costs and improving liquidity. However, individual investors won’t have access to this model and must continue using cash.
ETF analyst James Seyffart believes in-kind redemptions will make ETFs trade more efficiently, while Bitseeker Consulting’s Chris J Terry highlights tax efficiency benefits by minimizing capital gains distributions.
Despite the current structure, BlackRock’s IBIT continues to see strong inflows, reflecting growing investor interest.
Source: Cointelegraph
