Nasdaq has filed a proposed rule change to permit in-kind creation and redemption for the BlackRock iShares Bitcoin Belief (IBIT), in line with a Friday submitting to the U.S. Securities and Change Fee (SEC).

The method permits massive institutional buyers, known as licensed individuals (APs), to purchase and redeem shares of the fund on to bitcoin (BTC).

It’s thought of to be extra environment friendly because it permits APs carefully monitor the demand for the ETF and to behave quick by shopping for or promoting shares of the fund with out money being concerned within the course of. Retail buyers are usually not eligible to take part.

When the SEC first accredited spot bitcoin ETFs together with IBIT final January, the company allowed to launch the funds with money redemption, as a substitute of bitcoin.

“It ought to have been accredited within the first place however Gensler/Crenshaw did not wish to permit it for an entire host of causes they gave,” Bloomberg Intelligence ETF analyst James Seyffart wrote on X. “Primarily [they] did not need brokers touching precise Bitcoin.”

BlackRock’s IBIT is the most important spot BTC ETF available on the market, attracting almost $40 billion of inflows in its first 12 months, making it essentially the most profitable ETF debut ever.