Bitcoin News: Nasdaq Seeks SEC Approval for BlackRock IBIT Bitcoin ETF In-Kind Transactions

Nasdaq has submitted a request to the SEC to amend the operational framework of BlackRock's IBIT Bitcoin ETF, aiming to introduce direct Bitcoin transactions alongside the existing cash-based model. This proposed change, filed on January 24, seeks to streamline the ETF’s creation and redemption process by minimizing intermediaries. However, the in-kind transactions would be limited to institutional participants, excluding retail investors. If approved, this amendment could significantly enhance the efficiency and accessibility of Bitcoin ETFs for institutional players.

Nasdaq Seeks SEC Nod for BlackRock IBIT ‘In-Kind’ Bitcoin Transactions

Nasdaq has requested SEC approval to amend the operational framework of BlackRock's IBIT Bitcoin ETF to allow direct Bitcoin transactions alongside the existing cash-based model. This change, filed on January 24, aims to simplify the ETF’s creation and redemption system by reducing intermediaries. However, the in-kind process would be exclusive to institutional participants, excluding retail investors. If approved, authorized participants (APs) could settle transactions in Bitcoin instead of converting to cash, offering benefits like tax efficiency, improved price alignment with Bitcoin’s market value, and a streamlined process.

BlackRock Bitcoin ETF Inflow Streak Aligns With Nasdaq’s In-Kind Push

The proposed in-kind process for BlackRock's Bitcoin ETF aligns with its recent inflow streak. This process would allow institutional participants to transact directly in Bitcoin, enhancing efficiency and reducing reliance on cash conversions. Retail investors, however, would not have access to this feature. The move is expected to improve tax efficiency, align prices more closely with Bitcoin’s market value, and streamline transactions for authorized participants (APs).

Nasdaq Seeks In-Kind Creation and Redemption for BlackRock Spot Bitcoin ETF

Nasdaq has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) on behalf of BlackRock, aiming to enable in-kind creation and redemption for its spot Bitcoin exchange-traded fund (ETF), the BlackRock iShares Bitcoin Trust (IBIT). The filing, submitted on January 24, seeks a rule change to allow authorized participants to use Bitcoin directly, rather than cash, for creating or redeeming ETF shares. According to Nasdaq’s filing, authorized participants, typically large financial institutions, could choose between Bitcoin or cash to facilitate the creation of new shares or to redeem existing ones. This approach improves efficiency by eliminating costs associated with bid/ask spreads and broker commissions.

Bitcoin – What funding rates tell us about the changing market sentiment

Bitcoin's recent price action around $104,000 gains deeper context when analyzed alongside perpetual futures funding rates. This analysis reveals crucial insights into market sentiment and potential directional moves. Positive funding rates have persisted despite consolidation, with rates hitting 0.075% in January 2025. The MA cross between the 50-day (98,870.83) and 200-day (76,229.51) moving averages maintained a bullish structure for the cryptocurrency. The daily chart suggested that Bitcoin has been consolidating NEAR $104,289, with a slight decline of 0.54% at press time. The Bollinger Bands (91,175.85 – 108,514.95) hinted at potential price movements.

Bitcoin Volume Crashes 46%: Are Investors Losing Interest?

On-chain data from Glassnode indicates a significant decline in Bitcoin's transaction volume, dropping to $11.2 billion from its previous highs. This reduction in volume suggests a potential decrease in trading interest among investors, as fewer transactions are being made on the Bitcoin network. The Total Transfer Volume metric, which measures the USD value of Bitcoin involved in daily transactions, is currently low, indicating that traders might be less active or interested in Bitcoin at this time.