Nasdaq Submits Amendment to SEC Including 'Spot Redemption' for BlackRock IBIT

Uk Jin

Summary

CoinDesk reported that if the amendment submitted by Nasdaq to the SEC for BlackRock's spot ETF is accepted, large institutional investors will be able to redeem with Bitcoin.
The amendment is expected to allow institutional investors to monitor ETF demand more efficiently and respond quickly.
A Bloomberg analyst pointed out the need for an ETF that allows Bitcoin spot redemption from the start and criticized the stance of past SEC commissioners.

With the Securities and Exchange Commission (SEC) being composed of crypto-friendly commissioners in line with the administration's stance, significant changes are anticipated for cryptocurrency spot Exchange Traded Funds (ETFs).

On the 24th (local time), the crypto-specialized media CoinDesk reported that Nasdaq submitted an amendment to the SEC to allow spot creation and redemption for BlackRock's Bitcoin (BTC) spot ETF IBIT.

If this amendment is accepted, large institutional investors (APs) purchasing BlackRock IBIT will be able to redeem it with Bitcoin. CoinDesk evaluated this by stating, "Institutional investors will be able to monitor the demand for ETFs more efficiently and act more swiftly."

There was also criticism that such a method should have been applied to ETFs from the start. James Seyffart, a Bloomberg ETF analyst, criticized on X (Twitter), "When the first ETF came out, it should have naturally been in a form that allowed Bitcoin spot redemption, but former SEC Chairman Gary Gensler and Caroline Crenshaw did not want institutional investors to hold Bitcoin directly."

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