Bitcoin ETF Update: BlackRock, Nasdaq and SEC Discuss Listing Rules

After years of speculation and delays, Bitcoin ETFs appear to finally be on the verge of launching in the United States. Major companies such as BlackRock and Nasdaq are in talks with the Securities and Exchange Commission (SEC) to discuss the possibilities.

Nasdaq offers a helping hand

Of course, if BlackRock gets approval, they won’t get there yet. ETF shares must also be tradable; Nasdaq offers a platform for this.

The transactions are a sign that Bitcoin’s acceptance as a serious asset class is increasing. ETFs make it easier for investors to invest in Bitcoin through the traditional stock market. This could increase access to Bitcoin for a wider audience (read: lots of money).

However, the SEC remains cautious. The regulator is concerned about possible risks of Bitcoin, such as market manipulation and fraud. Yesterday, the SEC noted in a memo that BlackRock’s Bitcoin ETF proposal is not yet fully compliant.

Possibility of cash purchase

BlackRock has since made adjustments to the proposal, including adding a spot call option.

A cash redemption option is a provision in an exchange-traded fund (ETF) that allows investors to exchange their ETF shares for cash directly with the ETF issuer. This option is typically offered to provide investors with greater liquidity and flexibility in their investments.

The ability to redeem funds is especially important for ETFs that track illiquid assets, such as commodities or currencies, and in this case, cryptocurrencies. With any luck, this will convince hesitant investors to invest their money in this new ETF.

Optimism everywhere

Bitcoin bulls like Michael Saylor are optimistic about the prospects for Bitcoin ETFs. Saylor believes that the launch of a Bitcoin ETF in 2024 could lead to a significant increase in the price of Bitcoin.

It remains to be seen whether this will actually happen. The SEC has not yet made a final decision on approving Bitcoin ETFs. But the conversations that are taking place now are a positive development.

Source: BTC Direct

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