From some MIT resources: Because there is no more rope below the bottom, there is no mass below this point, and therefore no weight pointing down. Therefore tension at the bottom end of the rope is zero - there is no force exerted at the bottom end
Why the mass of that point is being discarded as if the point itself wouldn't count? The argument "no mass below this point" seems sketchy as when we draw FBD we look at the forces on the object/point. Assuming that point has mass $ dM $, wouldn't the tension at the bottom be $ T - dM g = dM a $ and because the rope has no acceleration: $ T = dM $g? i.e. very small but not zero.