Nasdaq, the world’s second-largest stock exchange, has filed an application on behalf of BlackRock to modify the structure of the iShares Bitcoin Trust (IBIT), allowing the redemption of assets in “in-kind” form.

“The Exchange proposes to amend the process for creating and redeeming shares of the fund so that it may accept or deliver bitcoin on an in-kind basis as an alternative to the current cash-based process,” the filing states.

This new approach enables investors to withdraw their positions directly in bitcoin rather than selling the underlying cryptocurrency and providing proceeds in cash. The shift could streamline the process and potentially lower costs.

Nasdaq’s proposal now awaits SEC approval. Should the regulator grant its consent, the move could make spot Bitcoin ETFs more appealing to market participants, according to James Seyffart, an analyst at Bloomberg Intelligence.

IBIT manages approximately $60.6 billion in bitcoin assets, based on SoSoValue data.

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