According to a released memo, representatives from BlackRock (BLK), Nasdaq, and the Securities and Exchange Commission (SEC) convened for the second time in a month to deliberate on regulatory modifications required for the listing of the bitcoin (BTC) exchange-traded fund (ETF).
The memo states that the topic of discussion was The NASDAQ Stock Market LLC’s proposed rule change to list and trade shares of the iShares Bitcoin Trust in accordance with Nasdaq Rule 5711(d).
In order to maintain market integrity and safeguard against fraudulent activity, Nasdaq Rule 5711(d) lays out precise standards and regulatory guidelines for the listing and trading of Commodity-Based Trust Shares on the Nasdaq Exchange. It also describes the prerequisites for both initial and ongoing listing as well as compliance and surveillance measures.
As per an earlier report, the purpose of incorporating a surveillance-sharing agreement is to reduce the potential for market manipulation that is linked to cryptocurrency trading. This is an area of great concern for the SEC.
A released memo stated that the groups convened again in November to talk about the same subject. BlackRock presented two models for supporting their proposed ETF at this meeting in November: in-kind and in-cash redemption. In an effort to comply with SEC regulations, BlackRock recently updated its proposal for a spot bitcoin ETF to include cash redemptions.
The prospective bitcoin ETFs, according to MicroStrategy’s Michael Saylor, may be the largest Wall Street development in thirty years. This could lead to a major supply shock and subsequent surge in demand for bitcoin in 2024. Saylor made this claim during an appearance on Bloomberg TV this week.