NASDAQ SEEKS TO AMEND BLACKROCK'S BITCOIN ETF FOR IN-KIND REDEMPTIONS

- Nasdaq has filed a proposal to modify @BlackRock's spot $BTC ETF to incorporate in-kind redemptions. This adjustment would enable investors to exchange ETF shares directly for Bitcoin, rather than cash.

- In the ETF industry, in-kind redemptions allow for the exchange of ETF shares for the underlying asset, in this case, Bitcoin. This method can offer tax efficiencies and reduce transaction costs for investors.

- The move comes as issuers of spot Bitcoin ETFs have been addressing the SEC concerns, including the structure of creation and redemption processes. Some firms have adopted cash-only models, but Nasdaq's filing indicates a preference for in-kind transactions per The Block

- BlackRock's proposed ETF aims to provide investors with direct exposure to Bitcoin's price movements without the need to hold the cryptocurrency directly. 

- The inclusion of in-kind redemptions could enhance the fund's appeal by offering more flexibility in managing investments.
#BTC