Nasdaq has submitted a groundbreaking proposal to the U.S. Securities and Exchange Commission (SEC) that could transform the operational framework of Bitcoin exchange-traded funds (ETFs). The proposal, focused on BlackRock’s iShares Bitcoin Trust (IBIT), seeks to introduce “in-kind” bitcoin redemptions, offering a streamlined and cost-effective alternative to the current cash redemption process.

JUST IN: BlackRock files to allow in-kind creations and redemptions for its spot Bitcoin ETF! pic.twitter.com/SSigX4utRG

— Bitcoin Magazine (@BitcoinMagazine) January 24, 2025

What Are In-Kind Redemptions?

Under the proposed system, institutional players known as authorized participants…

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