CryptoConfluence: BlackRock, Nasdaq, and SEC Unite on Bitcoin ETF Discussions

In the ongoing discussions surrounding the potential listing of a Bitcoin exchange-traded fund (ETF), representatives from BlackRock (BLK), Nasdaq, and the Securities and Exchange Commission (SEC) have convened for the second time in a month. Their deliberations, outlined in a recently released memorandum, shed light on the regulatory adjustments deemed necessary for this significant financial move.

The primary focus of the meeting was a proposed rule change put forth by The NASDAQ Stock Market LLC. The intention behind this change is to streamline the listing and trading processes for shares associated with the iShares Bitcoin Trust under Nasdaq Rule 5711(d). This particular Nasdaq rule establishes explicit criteria and regulatory protocols governing the listing and trading of Commodity-Based Trust Shares on the Nasdaq Exchange. It encompasses prerequisites for both the initial listing and its sustained continuation, along with robust surveillance and compliance measures aimed at preserving market integrity and shielding against fraudulent activities.

Addressing concerns previously highlighted by Bitsday, the incorporation of a surveillance-sharing agreement took center stage as a strategic measure to counter market manipulation risks inherent in cryptocurrency trading—an issue of paramount importance to the SEC.

This recent assembly echoes a prior meeting held in November, with documented proceedings detailed in a released memorandum. The November session explored similar themes, with BlackRock presenting a comprehensive overview that included two supportive models: in-kind and in-cash redemption.

In a notable update, BlackRock adjusted its proposal for a spot Bitcoin ETF. The modification introduces the option of cash redemptions, aligning the proposal more closely with the preferences outlined by the SEC.

Commenting on the broader significance of potential Bitcoin ETFs, Michael Saylor of MicroStrategy shared his perspective during a recent appearance on Bloomberg TV. He asserted that these financial instruments could represent the most significant development on Wall Street in three decades. Saylor went on to suggest that this development has the potential to trigger a substantial bullish trend for Bitcoin in 2024, attributing it to heightened demand and the consequential impact of a supply shock on the market.

Read More: Bitcoin ETF Voyage: BlackRock's Horizon