According to a Nasdaq official, BlackRock’s first rejection of a Bitcoin ETF was “purely procedural” and not final


In June, the SEC said that certain ETF filings were insufficient.

Nasdaq CEO Giang Bui said on September 13 that the exchange’s decision to reject BlackRock’s proposed spot Bitcoin ETF will not influence the ETF’s ultimate success.

On June 15, BlackRock submitted paperwork to create a spot Bitcoin ETF. Although BlackRock submitted a Form S-1 to register the product, it was Nasdaq’s responsibility to submit a Form 19-b4 to suggest the necessary adjustments to the rules in order to list the product.

The U.S. Securities and Exchange Commission (SEC) ruled on June 30 that the latter file and many others were deficient and promptly rejected them. However, the focus of this ruling is on regulatory procedure rather than product content or future viability.

On the other hand, early rejections may not always be cause for concern for the candidates. In an interview with Forbes, Nasdaq’s Head of U.S. Equities & ETPs Giang Bui said:

“The SEC has seven business days from the time the exchange files [19-b4] to reject it on the grounds that it does not conform with SEC standards regarding form. Rejection at that point is more of a formality than an indicator of the product’s potential.”

After their original ETF application was denied, Nasdaq and others resubmitted it, this time including Coinbase as a partner in a surveillance-sharing deal. Even while Bui admitted that listing partners in this manner is rare, she said that the late inclusion was just Nasdaq’s endeavor to make its file “as strong as possible.”

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