Top Stories of The Week
Nasdaq seeks amendment to BlackRock’s Bitcoin ETF for in-kind redemptions
Nasdaq has submitted a filing on behalf of asset manager BlackRock, seeking a rule change to permit in-kind creation and redemption for its spot Bitcoin exchange-traded fund (ETF).
Bloomberg ETF analyst James Seyffart said in a Jan. 24 X post that BlackRock “should have been allowed to do this from the get-go” when the BlackRock iShares Bitcoin Trust launched alongside the other ten US spot Bitcoin ETFs in January 2024.
On the same day as the filing, six more crypto ETF applications were filed in the US.
Nasdaq proposed “to allow for in-kind transfers of the Trust’s Bitcoin,” as per a Jan. 24 filing with the US Securities and Exchange Commission.
The filing stated that “Authorized Participants” — institutions that facilitate the creation and redemption of fund shares — would be able to use either cash or Bitcoin to create shares or receive cash or Bitcoin when redeeming shares.
MicroStrategy may owe taxes on $19B unrealized Bitcoin gains: Report
Despite never selling any Bitcoin, MicroStrategy may have to pay taxes on its unrealized gains.
Michael Saylor’s MicroStrategy, the largest corporate Bitcoin holder, may have to pay federal income taxes on its unrealized gains, according to the Inflation Reduction Act of 2022.
The act established a “corporate alternative minimum tax” under which MicroStrategy would qualify for a 15% tax rate based on the adjusted version of the company’s earnings, according to Jan. 24 report in The Wall Street Journal.
Still, the US Internal Revenue Service may create an exemption for BTC under President Donald Trump’s more crypto-friendly administration.
MicroStrategy’s holdings have surpassed 450,000 BTC, worth more than $48 billion, after the company bought $243 million of BTC on Jan. 13.
Silk Road founder Ross Ulbricht thanks…
..
