U.S. SEC and Nasdaq meet with BlackRock to explore listing prerequisites for a Bitcoin ETF.

As soon as BlackRock and Nasdaq met with the Division of Trading and Markets of the U.S. Securities and Exchange Commission (SEC) on Tuesday, December 19th, it marked the beginning of a significant discussion. The purpose of the meeting, as seen in the below memo, was to talk about the asset manager's proposal for the introduction of a spot Bitcoin exchange-traded fund.

The document states that representatives of the organizations talked about the regulatory improvements necessary to facilitate the identification of the Bitcoin ETF.

As we all know, Nasdaq, an abbreviation for The National Association of Securities Dealers Automated Quotations Stock Market or Nasdaq Stock Market, is an American stock exchange based in New York City.

Similarly, BlackRock is a leading global provider of investment, consulting, and risk management services. They prioritize their clients' trust and responsibility by adhering to fiduciary duties.

"The NASDAQ Stock Market's proposed rule change to list and trade shares of the iShares Bitcoin Trust under NASDAQ Rule 5711(d)."

While the aforementioned regulation lays out precise listing requirements and regulatory rules, it also incorporates compliance checks and monitoring systems designed to safeguard user privacy and ensure market integrity.

The guidelines and policies governing Bitcoin ETF exchanges have been previously explored. BlackRock contributed information during the discussion regarding the potential use of an in-kind or in-cash redemption strategy for the iShares Bitcoin Trust.

The proposed rule change allowing major exchanges to list the ETF was discussed at a meeting on December 14th, marking the second meeting of the month. Gary Gensler, the former chair of the SEC, also attended.

BlackRock has revised its proposal for a spot bitcoin ETF, indicating that it would now attempt to comply with SEC regulations and incorporate cash redemptions. Meanwhile, Michael Saylor of MicroStrategy remarked on a Bloomberg TV program this week that Bitcoin ETFs could potentially be the largest development on Wall Street in thirty years. This sentiment raises the possibility of a substantial bull run for Bitcoin in 2024, driven by increased demand and a potential supply shock.

BlackRock sent shockwaves through the crypto space when it submitted an application for a spot Bitcoin ETF in June.  As the world's largest asset management company, its entry into the competition to establish a Bitcoin exchange-traded fund (ETF) reignited hopes that the SEC might finally approve such a financial product, ending a years-long trend of rejecting every application.

There is a possibility that the United States may ultimately authorize a spot Bitcoin ETF in 2024. According to analysts from JP Morgan and Bloomberg Intelligence, at least one Bitcoin ETF is expected to be approved in January 2024.

Despite the common belief that entering the cryptocurrency business requires a large amount of money, many analysts, including those from JP Morgan, express considerable interest in the prospects for the cryptocurrency market in 2024. They argue that funds are likely to transition from existing Bitcoin products such as the Grayscale Bitcoin Trust (GBTC), Bitcoin futures ETFs, and Bitcoin mining firms to spot Bitcoin ETFs.

All things considered, we may predict that 2024 will be a successful year for cryptocurrencies. Nevertheless, there could be various changes, including enhanced compliance and monitoring measures to ensure market integrity and protect investors against fraudulent activities. Hence, it is advisable to exercise caution when purchasing cryptocurrencies.