JUST IN: BlackRock has filed for “in-kind redemption” for their Bitcoin ETF, meaning investors can redeem their shares for actual Bitcoin instead of cash.
Discussion
BlackRock's move to in-kind redemptions for its Bitcoin ETF is a game-changer, signaling strong institutional faith in Bitcoin's value and legitimacy. This could significantly boost Bitcoin's adoption, liquidity, and price stability.
Wait why is in kind better?
Shit, we might be losing a fraction of a 2nd layer here... Boomers won't use it, but some Blackrock customers might do it.
Not individual investors though - the APs and sponsor (BlackRock in this case) would be able to create and redeem in kind. It will help the ETF be more tax efficient because it can offload low cost basis Bitcoin.
This graphic shows the role of the various players in ETF transactions
In kind conversion…
until enough people convert 🌽 for IBIT…
and then they change their mind…
I'll be curious to see what the outflows look like once this is approved.