Representatives, from BlackRock, Nasdaq and the U.S. Securities and Exchange Commission (SEC) recently held a meeting in than a month to discuss the necessary rule modifications required for listing a Bitcoin BTC -1.77% exchange traded fund (ETF).
The focus of this meeting was on a proposed rule change by The NASDAQ Stock Market LLC, aimed at allowing the listing and trading of iShares Bitcoin Trust shares under Nasdaq Rule 5711(d).
Nasdaq Rule 5711(d) has been developed to establish criteria and regulatory guidelines for listing and trading Commodity Based Trust Shares on the Nasdaq Exchange. It outlines requirements for ongoing listing well as surveillance and compliance measures to maintain market integrity and protect against fraudulent activities.
During these discussions BlackRock presented an updated proposal for its Bitcoin ETF that includes cash redemptions. This adjustment aligns with the SECs preferences. Addresses their concerns about potential market manipulation risks associated with cryptocurrency trading.
These meetings represent an effort between financial institutions and regulatory bodies to navigate the complexities involved in introducing cryptocurrency products like Bitcoin ETFs, into mainstream financial markets.