Nasdaq has proposed a rule change to the SEC to allow in-kind creation and redemption for the BlackRock iShares Bitcoin Trust (IBIT). This adjustment would let authorized participants (APs) use Bitcoin or cash to create or redeem fund shares.
In-kind processes, where APs directly transact in Bitcoin, enhance efficiency, enabling APs to swiftly respond to ETF demand without involving cash. Retail investors remain excluded from these activities.
Initially, the SEC approved spot Bitcoin ETFs like IBIT with cash-only redemption, but this proposed change reflects a move toward greater integration of Bitcoin in institutional ETF operations.
Bitcoin ETFs record massive inflows
On Jan. 24, 2025, the Bitcoin ETF market recorded a significant net flow of $517.7 million, according to Farside Investors. Key inflows included $186.1 million into FBTC, $168.7 million into ARKB and $155.7 million into IBIT. In contrast, BITB saw an outflow of $8.6 million.
Other ETFs such as BTCO, EZBC, BRRR, HODL and GBTC exhibited minimal activity, with BTCW registering a modest inflow of $2.8 million.
In addition, large investors have been driving Bitcoin price gains since the U.S. election, with their holdings increasing from 16.2 million to 16.4 million BTC, according to data from CryptoQuant.
In contrast, small investors reduced their holdings from 1.75 million to 1.69 million BTC during the same period.
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Arman Shirinyan
Tomiwabold Olajide
Vladislav Sopov