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Nasdaq Proposes In-Kind Bitcoin ETF Trading

Coin WorldMonday, Jan 27, 2025 7:56 am ET

1min read

Nasdaq has proposed a rule change to the U.S. Securities and Exchange Commission (SEC) that would allow for in-kind creation and redemption of shares for the BlackRock iShares Bitcoin Trust (IBIT). This move, if approved, would enable authorized participants (APs) to directly buy and redeem IBIT shares for bitcoin, eliminating the need for cash transfers and allowing APs to closely track market demand and react swiftly to fluctuations.

Currently, bitcoin ETFs, including IBIT, only allow for cash redemption. The proposed rule change would introduce in-kind redemption, a process not available to retail investors. This change could significantly improve the efficiency of ETF trading, as it would streamline the process and reduce the number of parties involved. However, the impact on individual retail investors is expected to be minimal.

BlackRock's IBIT has been a leading performer among bitcoin ETFs, with net inflows of $661.9 million on the first business day of Trump's presidency. As of Jan. 22, IBIT's holdings stood at 563,134 BTC, valued at $55.6 billion based on current market prices. Despite the proposed change, IBIT has experienced a slowdown in inflows over the past week.

In other news, artificial intelligence (AI) tokens have plunged over the last few hours amid a wider market drawdown. The launch of DeepSeek, a popular Chinese startup with a cost-efficient AI model that competes with ChatGPT, has led to a decline in AI token prices. The model, according to data from DeepSeek posted on Hugging Face, outperforms OpenAI despite using a fraction of the Graphics Processing Units (GPUs) that OpenAI's model uses. As a result, AI tokens with exposure to GPUs, including Aether and Nodes.AI, have seen their values plunge over the last 24 hours. The market drawdown also affected leading cryptocurrencies, with BTC dropping over 5% to $99,000.

Meanwhile, leading Solana-based decentralized exchange aggregator Jupiter has wrapped up its inaugural conference 'Castanbul 2025' with a series of announcements affecting the platform's native governance token JUP. The protocol's pseudonymous founder, known as 'Meow,' has declared his plans to establish JUP as

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