Coinspeaker
SEC Meets with Top Bitcoin ETF Applicant BlackRock, Here’s Why
The United States Securities and Exchange Commission (SEC) has again met with representatives from BlackRock Inc (NYSE: BLK). The meeting was the second time in less than a month, as the regulator appeared keen to tie up loose ends in the days leading up to its first approval of a Bitcoin (BTC) exchange-traded fund (ETF).
SEC Wants BlackRock to Be in Compliance
According to a published memo, Nasdaq was also in attendance to discuss rule changes that BlackRock must consider before listing a Bitcoin ETF. The memo reads in part:
“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).”
For what it’s worth, the Nasdaq Rule 5711(d) gives specific requirements that must be met to either list or trade Commodity-Based Trust Shares on the Nasdaq Exchange. It also describes what needs to be done to remain in compliance and enjoy continued listing after the initial approval. Essentially, the rule seeks to protect investors from fraudulent activities and ensure that the market integrity remains intact.
Recall that in an earlier publication, Coinspeaker noted that there has been an updated rule of a surveillance-sharing agreement. The rule ensures that firms are expected to constantly share their activities as a way of improving transparency and minimizing market manipulation risks that may be linked with crypto trading. And as it were, this manipulation risk is exactly what the SEC has been wary about, having publicly declared so on several occasions.
Bitcoin ETF Efforts in Top Gear
Without a doubt, the ball has been set rolling, and approval for a spot Bitcoin ETF might just be around the corner. The group met in November to discuss the same topic, according to a published memo. At the meeting, BlackRock reportedly presented two models; in-kind and in-cash redemption, for its proposed ETF.
Interestingly, BlackRock has since updated its spot bitcoin ETF proposal in a bid to adapt to SEC preferences. The company chose cash redemption in its newly updated proposal.
From all indications, all hands are on deck on the subject of a Bitcoin ETF. Even the SEC, which has often taken a rigid stance, has been more than open for discussions in recent times. So much so, that the entire industry now eagerly awaits approval shortly.
The potential Bitcoin ETFs are set to be the biggest thing that Wall Street has seen in 30 years. That is according to a statement by MicroStrategy’s Michael Saylor during a Bloomberg TV appearance earlier this week. Saylor concluded that the approvals would most likely activate a long bull run for Bitcoin in the coming year.
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SEC Meets with Top Bitcoin ETF Applicant BlackRock, Here’s Why