Published
4 months ago on
December 20, 2023
Table of Contents
- Spot Bitcoin ETF Discussions Continue
- BlackRock Recently Filed Revised Application
- Other Firms Met With SEC
Representatives from the Securities and Exchange Commission, Nasdaq, and BlackRock held a meeting to discuss rule changes required to list the Spot Bitcoin ETF.
This is the second meeting in a month, as negotiations between regulatory authorities and applicants continue to take place, with the January deadline fast approaching.
Spot Bitcoin ETF Discussions Continue
Apart from the meeting between officials from the Securities and Exchange Commission, Nasdaq, and BlackRock, the commission’s trading and markets division also met with Grayscale Investments regarding its application. The SEC announced its meeting with BlackRock and Nasdaq Stock Market employees in a memo, stating,
“The discussion concerned the NASDAQ Stock Market LLC’s proposed rule change to list and trade shares of the iShares Bitcoin Trust under NASDAQ Rule 5711(d).”
The Nasdaq Rule 5711(d) outlines establishing specific criteria and regulatory guidelines for listing and trading Commodity-Based Trust Shares on the Nasdaq Exchange. It also details the requirements for initial and continued listing, along with surveillance and compliance measures to ensure the market’s integrity and protect against any fraudulent activity. The inclusion of a surveillance-sharing agreement aims to address market manipulation risks associated with crypto trading, one of the things the Securities and Exchange Commission is very concerned about.
BlackRock Recently Filed Revised Application
BlackRock also held a presentation to highlight separate models for the ETF. The presentation discussed how an in-kind or an in-cash redemption model could work in support of the ETF. The Securities and Exchange Commission has always preferred the in-cash redemption model, keeping in mind investor safety. As a result, BlackRock updated its proposal. The updated proposal stated that BlackRock’s ETF would feature the cash creation and redemption mechanism that the SEC prefers.
“These transactions will take place in exchange for cash. Subject to the In-Kind Regulatory Approval, these transactions may also take place in exchange for bitcoin.”
BlackRock, in its initial application, had proposed an in-kind redemption model. Given the SEC’s stance, other applicants such as Galaxy Digital, Valkyrie, Invesco, and others have also updated their filings.
Other Firms Met With SEC
Bloomberg ETF analyst James Seyffart revealed that several other firms that have applied for a spot Bitcoin ETF also met with the SEC in recent weeks. These include Grayscale, Fidelity, Ark Invest, 21Shares, WisdomTree and more.
“Grayscale had meetings with the SEC’s division of trading and markets yesterday (the division in charge of approving or denying 19b-4’s). Have also heard rumblings of other potential spot #bitcoin ETF issuers meeting with SEC in the last ~week or so.”
Experts are of the view that the SEC will approve several ETFs simultaneously, with investors patiently waiting for the commission’s decision. When BlackRock first submitted its application back in June, it immediately impacted the price of Bitcoin, with the price of the asset rising by over $5000 in a week. Bitcoin has been on an upward trajectory for most of the year, with the asset’s price crossing the $43,000 mark.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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