American investment management company BlackRock is pushing for a new redemption model for its ETF product, the iShares Bitcoin Trust (IBIT). Notably, its trading venue, the Nasdaq Stock Market LLC, filed for the in-kind redemption model with the United States Securities and Exchange Commission (SEC).

BlackRock iShares Bitcoin Trust and In-Kind Redemption

The proposed rule change from Nasdaq anchors on the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934. As demanded, it seeks to allow specifically qualified or authorized participants to transfer the trust’s Bitcoin holdings.

NEW: BlackRock/iShares just filed to allow in-kind creation and redemption on their Bitcoin ETF $IBIT pic.twitter.com/Hy0tIEK81h

— James Seyffart (@JSeyff) January 24, 2025

If approved, this rule change will allow authorized participants to redeem their proceeds in BTC instead of cash. The in-kind model is ideal for most exchange-traded fund products. However, in the runup to the approval last year, the issuers compromised as the Gary Gensler-led SEC preferred the cash creates model.

This filing is coming after BlackRock launched the BTC ETF variant on CBOE Canada.

This is a breaking story, please check back for updates!!!

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