Representatives from the Securities and Exchange Commission, Nasdaq, and BlackRock held a meeting to discuss regulatory changes needed to list a spot Bitcoin ETF.
This is the second meeting in a month as negotiations between regulators and applicants continue to progress and the January deadline is fast approaching.
Spot Bitcoin ETF Discussion Continues
In addition to meetings between Securities and Exchange Commission, Nasdaq, and BlackRock officials, the Commission’s Trading and Markets Division also met with Grayscale Investments regarding the application. The SEC announced a meeting with BlackRock and Nasdaq Stock Market staff in a memo.
“This discussion concerns NASDAQ Stock Market LLC’s proposed rule changes for listing and trading the shares of the iShares Bitcoin Trust pursuant to NASDAQ Rule 5711(d).”
Nasdaq Rule 5711(d) describes how to establish specific standards and regulatory guidelines for listing and trading commodity-based trust shares on the Nasdaq exchange. It also details requirements for initial and ongoing listings, along with monitoring and compliance measures to ensure market integrity and protect against fraudulent activity. The inclusion of surveillance sharing agreements aims to address one of the Securities and Exchange Commission’s greatest concerns: the risk of market manipulation associated with cryptocurrency trading.
BlackRock’s recently submitted amendment application
BlackRock also held a presentation highlighting the ETF’s separate model. The presentation discussed how in-kind or cash redemption models could work to support ETFs. Keeping the safety of investors in mind, the Securities and Exchange Commission has always preferred the cash redemption model. As a result, BlackRock updated its offering. The updated proposal states that BlackRock’s ETF features the SEC’s preferred cash generation and redemption mechanisms.
“These transactions are exchanged for cash. “Subject to spot regulatory approval, these transactions may also be exchangeable for Bitcoin.”
BlackRock proposed an in-kind redemption model in its initial application. Considering the SEC’s position, other applicants such as Galaxy Digital, Valkyrie, Invesco, etc. have also updated their filings.
Other companies that have met with the SEC
Bloomberg ETF analyst James Seyffart said several other companies that applied for spot Bitcoin ETFs also met with the SEC in recent weeks. These include Grayscale, Fidelity, Ark Invest, 21Shares, WisdomTree, etc.
“Grayscale had a meeting yesterday with the SEC’s Trading and Markets Division (the department responsible for approving or denying 19b-4s). We have also heard rumors of other potential spot Bitcoin ETF issuers meeting with the SEC in the last week or so.”
Experts believe the SEC will approve multiple ETFs simultaneously, and investors are patiently awaiting the committee’s decision. When BlackRock first submitted its application in June, it had an immediate impact on the price of Bitcoin, sending the asset price up more than $5,000 in a week. Bitcoin has been on the rise all year, with the asset price exceeding $43,000.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.