Asset management giant BlackRock and the Nasdaq exchange have reignited hopes for the launch of the highly anticipated Bitcoin ETF as the companies met with the US Securities and Exchange Commission (SEC) Division of Trading and Markets this week.
Led by Robert Mitchnick, head of digital assets at BlackRock, and Joseph Cusick, vice president of Nasdaq, the discussions focused on the proposed amendment to Nasdaq Rule 5711(d), which would allow listing and trading of iShares Bitcoin Trust shares would make.
According to the SEC, the rule, which is critical to the process, establishes strict criteria for the listing of commodity-based fiduciary stocks, including compliance standards.
Notably, BlackRock recently updated its S-1 form, introduced the new IBIT ticker for its proposed iShares Bitcoin Trust, and switched to a cash redemption ETF. The strategic change signals a more cautious approach, allowing new shares of the fund to be created with cash, not Bitcoin.
BlackRock agreed to the SEC’s preferred bailout method after weeks of meetings. The measure is intended to “dot the i’s and cross the t’s” before the holidays, said Eric Balchunas, ETF analyst at Bloomberg Intelligence.
“It’s a good sign”he added.
A meeting between BlackRock and SEC indicates ETF could be approved at any time
The meeting between BlackRock and the SEC is the latest in a series of meetings between the giants, including previous discussions about a proposal that would make it easier for Wall Street banks to participate in the ETF, and transfer risk to market makers for cryptocurrency.
BlackRock’s entry into the Bitcoin ETF race had already caused a stir in the cryptocurrency market in June with its first filing.
As the January 2024 approval period approaches – a period in which the SEC could approve multiple applications at once – optimism is growing that 2024 could be the year the United States finally sees the approval of a cash Bitcoin ETF.
Analysts from Bloomberg Intelligence and JP Morgan support this expectation, as the approval of at least one Bitcoin ETF is likely as soon as January.
The move by BlackRock and Nasdaq could be a crucial milestone in legitimizing Bitcoin as a mainstream financial asset, potentially paving the way for greater institutional adoption of the cryptocurrency.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
