Discussion on Spot Bitcoin ETF Continues
Representatives from regulatory authorities, including the Securities and Exchange Commission (SEC), Nasdaq, and BlackRock, have had a second meeting to discuss the necessary rule changes for listing the Spot Bitcoin ETF. This meeting comes as negotiations continue between the authorities and the applicants, with the deadline approaching in January.
Nasdaq Rule 5711(d) and Surveillance Measures
The discussion between the SEC, Nasdaq, and BlackRock focused on the proposed rule change to list and trade shares of the iShares Bitcoin Trust under Nasdaq Rule 5711(d). This rule outlines the criteria and regulatory guidelines for listing and trading Commodity-Based Trust Shares. It also includes surveillance and compliance measures to ensure market integrity and prevent fraudulent activity.
BlackRock’s Revised Proposal
BlackRock recently presented separate models for the ETF, discussing how the in-kind or in-cash redemption mechanism could work. The SEC prefers the in-cash redemption model for investor safety, and BlackRock updated its proposal accordingly. The revised proposal includes the option for cash creation and redemption, with the possibility of bitcoin exchanges subject to regulatory approval.
Other Firms Meeting with the SEC
Aside from BlackRock, several other firms that have applied for a spot Bitcoin ETF, including Grayscale, Fidelity, Ark Invest, and WisdomTree, have also met with the SEC. These meetings indicate that multiple ETFs could be approved simultaneously by the SEC, with investors eagerly awaiting the commission’s decision.
Hot Take: SEC’s Potential Approval of Multiple Bitcoin ETFs
Experts speculate that the SEC may approve several Bitcoin ETFs at once. The anticipation of ETF approval has already had a significant impact on the price of Bitcoin. For example, when BlackRock initially submitted its application, the price of Bitcoin increased by over $5000 in a week. With Bitcoin’s price crossing the $43,000 mark, investors are closely watching the SEC’s decision regarding the spot Bitcoin ETF.
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