TechFlow reported, according to The Block, that Nasdaq submitted a revised rule filing on Friday, which would allow for the transfer of trust-held bitcoin via "in-kind" transfers.
Under the new filing, "the Exchange now proposes to amend the prior rule filing’s statements regarding the Trust's creation and redemption processes in order to list and trade shares, specifically allowing for in-kind transfers of bitcoin by the Trust." "The proposed in-kind transfer process would serve as an alternative to the Trust’s current cash-based creation and redemption process."
More than a year ago, before the SEC approved spot bitcoin ETFs, companies were discussing the technical details of redemption mechanisms for such products. The SEC favored the cash model, requiring BlackRock to pull bitcoin from storage, immediately sell it, and return cash proceeds to investors.
James Seyffart, ETF analyst at Bloomberg Intelligence, said in a Friday post on X that the potential revised process does not mean individual investors will be able to conduct "in-kind" redemptions or creations—only authorized participants will have that ability.
