BlackRock Bitcoin ETF sees $39B inflows amid Nasdaq filing

Nasdaq has submitted a filing on behalf of BlackRock to amend its Bitcoin (CRYPTO:BTC) exchange-traded fund (ETF) to allow in-kind creation and redemption.

The proposal, filed on January 24, seeks to enable Authorised Participants—institutions managing ETF share transactions—to use Bitcoin or cash for creating and redeeming shares.

This in-kind model is considered more efficient as it avoids costs like bid/ask spreads and broker commissions associated with selling assets to raise cash.

James Seyffart, an ETF analyst at Bloomberg, commented that this model “should have been allowed from the get-go” when the iShares Bitcoin Trust (IBIT) launched in January 2024.

He explained that the change could streamline ETF operations by reducing steps and parties involved, making trading more efficient.

However, individual investors will not have access to this model and will continue using cash for transactions.

Chris J Terry, chief architect at Bitseeker Consulting, clarified that this amendment primarily benefits Authorised Participants by improving liquidity within the ETF.

Terry also highlighted the tax efficiency of in-kind redemptions, noting that they help minimise capital gains distributions for fund investors.

Since its launch, IBIT has recorded $39.57 billion in inflows, according to Farside data, making it a key player in the U.S. spot Bitcoin ETF market.

The same day as Nasdaq’s filing, several other crypto-related ETF applications were submitted.

European investment firm CoinShares applied for Litecoin (CRYPTO:LTC) and XRP (CRYPTO:XRP) ETFs, while Grayscale filed to convert its Solana (CRYPTO:SOL) and Litecoin Trusts into ETFs and proposed new ETFs like a Bitcoin Adopters Fund.

These developments reflect growing institutional interest in cryptocurrency investment products as regulatory clarity evolves in the United States.

At the time of reporting, the Bitcoin (BTC) price was $101,859.