Nasdaq, BlackRock, and SEC Edge Closer to Bitcoin ETF Approval

Representatives from BlackRock, Nasdaq, and the Securities and Exchange Commission (SEC) have held their second meeting within a month to discuss the necessary rule changes for listing a Bitcoin (BTC) exchange-traded fund (ETF).

The focus of their recent discussion was on The NASDAQ Stock Market LLC’s proposal to list and trade shares of the iShares Bitcoin Trust under Nasdaq Rule 5711(d).

Understanding Nasdaq Rule 5711(d)

Nasdaq Rule 5711(d) lays down specific criteria and regulatory guidelines essential for listing and trading Commodity-Based Trust Shares on the Nasdaq Exchange.

This includes requirements for initial and continued listing, surveillance, and compliance measures. These measures are crucial in maintaining market integrity and safeguarding against fraudulent activities, especially in crypto trading.

The inclusion of a surveillance-sharing agreement is a strategic move to mitigate market manipulation risks, a major concern for the SEC.

In a previous meeting in November, BlackRock presented two models, in-kind and in-cash redemption, for their proposed ETF. Recently, BlackRock updated its spot bitcoin ETF proposal to include cash redemptions, aligning more with SEC preferences.

Market Implications and Future Prospects

Michael Saylor of MicroStrategy, in a Bloomberg TV appearance, highlighted the significance of potential bitcoin ETFs.

He suggested that they could mark the most crucial development on Wall Street in 30 years. Saylor predicts a significant bitcoin bull run in 2024, fueled by increased demand and a supply shock if these ETFs come to fruition.

The $BTC Spot ETF may be the biggest development on Wall Street in the last 30 years. My discussion of #Bitcoin in 2024, Spot ETFs vs. $MSTR, and the emergence of bitcoin as a treasury reserve asset with @KaileyLeinz on Bloomberg @Crypto. pic.twitter.com/QtPdBOhMDr

— Michael Saylor⚡️ (@saylor) December 19, 2023