Nasdaq has filed an application with the Securities and Exchange Commission to allow in-kind transfers of BlackRock's Bitcoin exchange-traded fund, simplifying the process for authorized participants.

In a Deposit filed with the US Securities and Exchange Commission, Nasdaq Proposed on behalf of Black Rock To amend certain terms contained in the initial iShares Bitcoin proposal (Bitcoin) a trust that would “permit in-kind transfers of the Fund’s Bitcoin.”

“The proposed in-kind transfer would be an alternative to the Fund’s current cash creation and redemption process,” Nasdaq wrote in the document.

If the amendment is approved, IBIT investors who fall under the category of approved participants will be able to exchange Bitcoin ETF Shares of underlying assets rather than cash. These underlying assets can also include Bitcoin and others. Authorized participants are usually large corporations, not individual shareholders. In-kind redemption helps maintain ETF liquidity because it simplifies the process.

Bloomberg ETF analyst James Seyphart explained recently mail The process of trading ETFs will become more efficient because it is “more streamlined, with fewer steps and fewer parties involved.” He also criticizes the Securities and Exchange Commission when it was working under Gary Gensler to enforce cashbacks due to regulatory preferences.

“In my opinion, ETFs should have been allowed to do this from the beginning, but the Democratic SEC commissioners opposed it,” Seyphart said.

Although this change may not mean much to individual investors, it benefits IBIT investors a lot. Aside from liquidity, in-kind redemptions can play a key role in tax efficiency because they can reduce capital gains distributions, which will in turn benefit shareholders, said Chris J. Terry, chief architect at Bitseeker Consulting.

Ditto I mentioned By crypto.news BlackRock's IBIT fund emerged at the top of 12 Bitcoin ETFs with net inflows of $661.9 million on the first business day of Trump's presidency. However, it has seen a slowdown in inflows throughout the past week.

On January 22, BlackRock's IBIT was released He added 6,470 BTC to its holdings, bringing the total to 563,134 BTC. BlackRock's IBIT Bitcoin holdings are currently worth $55.6 billion, based on current market prices.