The U.S. Securities and Exchange Commission (SEC) has put its decision on Blackrock’s Bitcoin ETF application on hold, citing public feedback regarding legal and policy concerns. The SEC invited comments on the proposal, seeking input on potential changes to the fund’s redemption method. The current cash-based model, which requires investors to convert Bitcoin into cash upon selling shares, is being challenged by a proposed in-kind system, where Bitcoin would be directly exchanged for shares. This change aims to enhance trading efficiency. Notably, Nasdaq filed an updated rule change in January to support this new model. The SEC’s decision on the proposed changes will have significant implications for the future of crypto ETFs in the U.S. It follows a recent trend of delaying decisions on other ETF applications, including Grayscale Litecoin and Solana Trusts and the 21Shares Dogecoin ETF. The SEC has recently adopted a more lenient stance on crypto regulations under Chair Paul Atkins. A clearer regulatory framework may pave the way for greater innovation within the crypto ecosystem.