The U.S. Securities and Exchange Commission (SEC) has delayed its decision regarding in-kind redemptions for BlackRock's Bitcoin exchange-traded fund (ETF), as announced on Tuesday. The agency is now soliciting public comments on the proposal.
According to a filing made on Tuesday, Nasdaq had previously submitted an amended rule in January to facilitate in-kind redemptions and creations for the iShares Bitcoin Trust. The SEC has initiated proceedings to assess whether the proposed rule change should be approved or rejected, citing legal and policy considerations.
BlackRock's Bitcoin ETF, along with others, received SEC approval to commence trading in January 2024. The SEC also delayed proposals for the Grayscale Litecoin Trust and the Grayscale Solana Trust on Tuesday, seeking public input. The agency also requested public comments for the 21Shares Dogecoin ETF on Tuesday.
Bloomberg Intelligence ETF analyst James Seyffart noted earlier this year on X that approval of in-kind redemptions could enhance ETF trading efficiency. Since January, the SEC has withdrawn multiple lawsuits against crypto firms and conducted public roundtables to discuss industry regulation. SEC Chair Paul Atkins presented his vision for crypto regulation on Monday, criticizing the agency's past strategies.
The agency is likely to take an overall friendlier approach to crypto ETFs than in the prior administration.
This article is based on our author's analysis of materials taken from the following resources: Reuters.