A year after the launch of its Bitcoin ETF, BlackRock is not resting on its laurels. The financial giant is pushing even further with a request for regulatory modification aimed at introducing “in-kind” exchanges into its IBIT fund. This innovative model promises smoother and more economical transactions, reserved for authorized participants. An initiative that demonstrates BlackRock’s desire to reshape the crypto market.
In-kind exchanges: a major step forward for the Bitcoin ETF
Bitcoin news: BlackRock asked the SEC, via Nasdaq, to allow redemptions “in kind” for its IBIT Bitcoin ETF. This mechanism aims to simplify transactions between the fund and authorized participants (APs), such as large financial institutions.
Concretely, the latter will be able to directly exchange bitcoins for ETF shareswithout going through cash conversions.
Why is this so revolutionary? Currently, redemptions often involve high fees, such as buy and sell spreads or broker commissions. With the model in kindthese costs disappear.
According to James SeyffartETF analyst:
“ This improves transaction efficiency while reducing friction. »
The benefits are numerous:
- Cost reduction : fewer intermediaries means fewer costs;
- Increased transparency : bitcoin movements become traceable on the blockchain;
- Tax efficiency : capital gains are optimized for institutional investors.
However, this flexibility remains inaccessible to individuals. MartyParty, crypto analyst, recalls:
“ In-kind exchanges only concern big players. Small investors will have to make do with the old model. »
BlackRock dominates the crypto ETF market with IBIT
Since its launch in January 2024, BlackRock's IBIT Bitcoin ETF has attracted nearly 40 billion dollars in inflowan absolute record for a product of this type. This massive enthusiasm illustrates the confidence of institutional investors in cryptos despite market turbulence.
While BlackRock refines its strategies, other players seek to assert themselves. CoinShares recently filed applications for ETFs based on Litecoin and XRP, while Grayscale is increasing initiatives with products dedicated to Solana and Ethereum.
But the ETF giant remains in the lead thanks to its capacity for innovation.
For Chris J. Terry, expert in financial strategies, this advance is a “ real boon for ETF liquidity “. By optimizing exchanges, BlackRock makes its products more attractive for large investors while consolidating its dominance in the market.
Furthermore, this dynamic highlights a paradigm shift in the crypto sector. Traditional institutions, once reluctant, are now adopting bold strategies to meet growing demand.
With the IBIT Bitcoin ETF, BlackRock is not just following the trend: it is redefining it.
Ultimately, BlackRock's IBIT Bitcoin ETF marks a milestone in ETF history. After more than a decade of waiting, the SEC has validated a product that is experiencing record growth. A revolution for the ETF market and a breakthrough for Bitcoin.
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