In a groundbreaking move for the cryptocurrency investment landscape, BlackRock has filed a proposal to amend its iShares Bitcoin ETF (IBIT) to allow for in-kind redemptions. The proposal, submitted to Nasdaq, aims to streamline the redemption process and improve tax efficiency for institutional investors, reflecting the growing demand for Bitcoin investment products.

A Strategic Shift for Institutional Investors

The proposed amendment would enable authorized participants (APs) to redeem shares of the iShares Bitcoin ETF directly for Bitcoin, rather than cash. This shift is expected to enhance operational efficiency by reducing costs associated with cash-based redemptions, such…