BlackRock, Nasdaq, and SEC Assess Regulations for Bitcoin ETF Listing
Summary:
In a series of meetings, BlackRock, Nasdaq, and the SEC reviewed the proposed regulations and requirements necessary for listing a spot Bitcoin ETF. The discussions focused on modifying Nasdaq's rules to accommodate the trading of iShares Bitcoin Trust shares and stressed the importance of market integrity and investor protection. The proposed changes included the possibility of using either an in-kind or in-cash redemption model for the iShares Bitcoin Trust. High-ranking SEC officials attended the latest meeting to discuss these rule adaptations further.
In a second meeting held in December, BlackRock, Nasdaq, and the U.S. Securities and Exchange Commission (SEC) discussed the application for a Bitcoin (BTC) exchange-traded fund (ETF) that trades on the spot market. An official memo from the SEC reveals that the meeting was steered towards discussing the needed adjustments to rules to permit the listing of a spot Bitcoin ETF. During the discourse, the focal point was Nasdaq's proposed alteration of its rules to facilitate the listing and trading of iShares Bitcoin Trust shares under Nasdaq Rule 5711(d).
Nasdaq Rule 5711(d), which was elaborated upon in the meeting, stipulates the prerequisites for both the initial and ongoing listing of Commodity-Based Trust Shares on the Nasdaq platform. This guideline cements regulatory benchmarks and specific listing requirements incorporating compliance measures and monitoring mechanisms devised to uphold market decorum and safeguard investors from fraudulent activities.
This conference was not the first occurrence of discussing the regulations regarding the listing of a spot Bitcoin ETF on trading exchanges. On November 20, a similar conversation took place between BlackRock, Nasdaq, and the SEC. BlackRock proposed rule changes to permit the listing of a spot Bitcoin ETF, presenting an explanation of their potential use of either an in-kind or in-cash redemption model for the iShares Bitcoin Trust.
In yet another interaction held on December 14, the SEC engaged in deliberations with asset managers who were proposing a spot Bitcoin ETF. Officials from the SEC Chair Gary Gensler's office attended the discussion on the proposed rule alteration to allow significant exchanges to list the spot Bitcoin ETF.
Published At
12/20/2023 11:08:20 AM
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