Nasdaq Proposes Rule Change for Bitcoin Trust Amid Upcoming Spot ETF Regulations

On January 25th, COINOTAG reported that Nasdaq has initiated a proposed rule change with the U.S. Securities and Exchange Commission (SEC) regarding the Bitwise iShares Bitcoin Trust (IBIT). This move seeks to enable in-kind creation and redemption processes for the trust, which would enhance operational flexibility. Notably, under the current framework expected to be in effect from January 2024, Bitcoin spot exchange-traded funds (ETFs) will restrict creation and redemption activities, mandating that these transactions be settled exclusively in cash. This shift could have significant implications for liquidity and trading strategies within the cryptocurrency markets, particularly for institutional investors. As the landscape evolves, stakeholders are closely monitoring regulatory developments that will shape the future of digital asset investment.