The world’s largest asset managers, BlackRock and Nasdaq, recently met with the U.S. Securities and Exchange Commission (SEC) to discuss possibly introducing a Bitcoin exchange-traded fund (ETF) that tracks spot prices.

The main topic of discussion during the meeting was Nasdaq’s proposed rule change, which concerned NASDAQ Rule 5711(d) and the listing and trading of shares of the iShares BTC Trust. The talks with the SEC show the industry’s resolve to launch more varied investment products in cryptocurrency and show that they are still pushing for regulatory approval.

Earlier this year, the agency repeatedly stressed the necessity of robust regulatory frameworks and market surveillance mechanisms as vital approval criteria. Graves Talking with influential parties such as BlackRock and Nasdaq indicates a readiness to investigate possible ways to resolve these issues.

SEC Reaffirms The Need For A Regulatory Framework, Investors Optimistic

Report say Spot Bitcoin ETF and not  futures-based ETFs would hold the underlying asset directly, giving investors exposure to the real cryptocurrency instead of futures contracts. The cryptocurrency community has commented that this distinction provides a more transparent and direct investment vehicle for individuals wishing to invest in Bitcoin through traditional financial markets.

Reacting to the potential approval, Stephen Graves from Decrypt has announced that BlackRock’s reputation and experience in the financial industry may be critical in determining how regulations are shaped for investment products about cryptocurrencies.

Representatives of the participating companies were Joseph Cusick, the Chief Regulatory Officer and VP of NASDAQ; Giang Bui, Exchange-Traded Products; and Alison Doyle, Head of ETP. On SEC’s team were Associate Directors in Trading and Markets, Eric Juzenas and David Shillman.

Experts Predict More Talks With SEC, Improvise More Stringent Measures

Speaking on the reason for making such moves on Spot ETF, NASDAQ has said that it has been a busy year for Nasdaq looking for ways to give investors controlled, safe access to digital assets.

The result of these talks will affect more than just the current proposal; it will likely change the regulatory landscape for future projects of a similar nature.

As of press time, getting a spot Bitcoin ETF approved by regulators may still be complicated and require more talks. The interaction between central banks, exchanges, and regulators shows that they are beginning to understand how important it is to incorporate digital assets into conventional financial markets. 

Constant Meeting By SEC With Applicants Raises Hope of Approval

BlackRock shocked the cryptocurrency market in June, announcing its interest in the Spot BTC ETF. BlackRock’s emergence has raised applicants’ hopes for SEC approval after years of declining many applications. All speculations and expert predictions have come up with January 2024 as a possible approval date.

Also, the serial meetings between the SEC and all participating applicants have further raised hopes of a possible approval by January 2024. According to analysts from JP Morgan and Bloomberg Intelligence, there’s every possibility that at least a Spot BTC ETF application will be approved by January 2024.

The latest meeting between NASDAQ, BlackRock, and SEC is 24 hours after BlackRock made amends in its S-1 application. The amendment proposed an iShares BTC Trust, which has gained a new ticker and has been ported to a cash-only ETF. However, the new shares of the funds that would be used will only be created using cash, not BTC.