SEC Delays Decision on BlackRock’s In-Kind Bitcoin ETF Redemptions

By: bitcoin ethereum news|2025/05/14 07:30:06
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The U.S. Securities and Exchange Commission (SEC) has decided to extend its review of whether BlackRock’s iShares Bitcoin Trust can offer in-kind redemptions—a method that allows investors to receive actual bitcoin instead of cash when redeeming shares. In a move disclosed Tuesday, the SEC opened the proposal to public comment. This step signals that the Commission is not ready to approve or reject the change without further input. Back in January, Nasdaq filed an amended rule change to allow in-kind creations and redemptions for the iShares Bitcoin Trust. The original ETF approval in early 2024 required redemptions to be handled in cash. That meant BlackRock needed to convert bitcoin to dollars before returning funds to investors, a process preferred by the SEC at the time due to its regulatory clarity. The switch to in-kind transactions would streamline ETF operations and could reduce transaction costs for investors. However, it also raises policy and legal questions the SEC is not ready to resolve yet. By initiating proceedings under Section 19(b)(2)(B) of the Exchange Act, the SEC acknowledges the complexity of the issue. The agency now seeks public feedback before deciding whether to approve or disapprove the rule change. The outcome could set a precedent for how crypto ETFs function and evolve in U.S. markets. Reporter at Coindoo Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets. Related stories Next article !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,'script','https://connect.facebook.net/en_US/fbevents.js');fbq('init','1188189499475368');fbq('track','PageView'); Source: https://coindoo.com/sec-delays-decision-on-blackrocks-in-kind-bitcoin-etf-redemptions/

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