BlackRock’s iShares Bitcoin Trust ETF may receive a substantial release, per a Friday 19b-4 type issuing from Nasdaq, which proposed a rule change to the exchange-traded fund that would allow in-kind BTC redemptions rather than just for cash.
Instead of having to sell the Bitcoin to a market maker and supply cash, authorised participants, aka big institutional investors, would be able to do so.
That’s the latest status quo, as it was when Joe Biden was president and Gary Gensler, the SEC approved IBIT and various Bitcoin ETFs for trading in January 2024.
However, under the newly elected president Donald Trump, things are changing, including the creation of an SEC bitcoin task force that appears to be focused on establishing clear regulations for the sector.
On Thursday, the SEC rescinded the questionable crypto finance law, called SAB 121, which discouraged businesses from taking guardianship of bitcoin.
According to Bloomberg ETF researcher James Seyffart, this new rule had considerably simplify the redemption process, with fewer actions and fewer parties involved in the transaction. Additionally, there might be fewer sales of Bitcoin nevertheless when ETFs are hit with redemption requests even though the requirement is to redeem for money.
Seyffart cited the SAB 121 overturn as a crucial component of the proposed Fund rule change in a post-reply on X.
” The side effects from scrapping SAB 121 are good only really beginning”, he suggested.
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