Bitcoin ETF Application Is Refiled, Designating Coinbase As A Partner
Nasdaq’s renewed attempt to list a BlackRock bitcoin ETF comes in response to recent feedback from the SEC. Last week, the regulatory body labeled previous proposals as “insufficient” due to their failure to explicitly mention the identity of the underlying market in surveillance-sharing agreements.
As per the latest submission by Nasdaq, they reached an agreement with Coinbase on June 8 regarding a surveillance-sharing arrangement. The filing highlights that Coinbase has accounted for approximately 56% of dollar-to-bitcoin trading on U.S.-based platforms so far this year.
Initially, the June 15 filing for the BlackRock ETF included a provision for a surveillance-sharing agreement but did not specify the exchange partner involved in the contract.
Unnamed sources reported to the Wall Street Journal on Friday that officials from the Securities Exchange Commission (SEC) deemed the bitcoin ETF applications submitted by Nasdaq and Cboe as “inadequate” because they failed to disclose the identity of the surveillance-sharing partner.
At the end of the week, Cboe’s BZX Exchange made a significant move by selecting Coinbase as its designated market for the surveillance-sharing agreement. This decision coincided with resubmitting applications for a spot bitcoin exchange-traded fund (ETF). Cboe is partnering with esteemed issuers, including Fidelity, WisdomTree, VanEck, ARK Invest, and Galaxy/Invesco.
These asset management firms are displaying unwavering determination to finally achieve the much-anticipated launch of a Bitcoin spot ETF. This goal has faced consistent denial from the U.S. Securities and Exchange Commission (SEC) in recent years.
Over the last 24 hours, Coinbase (COIN) shares have experienced a notable surge, rallying by approximately 8%. Alongside this rise, stocks associated with Bitcoin, such as Microstrategy, have also witnessed a significant uptick, with their stock soaring by 35% during the same period.
In conclusion, Nasdaq’s renewed attempt to list a BlackRock bitcoin ETF reflects their response to feedback from the SEC, which criticized previous proposals for lacking sufficient details on surveillance-sharing agreements. Nasdaq’s latest submission highlights their deal with Coinbase, a major player in the cryptocurrency market, which accounts for a significant portion of dollar-to-bitcoin trading in the United States. Similarly, Cboe’s BZX Exchange has chosen Coinbase as its designated market for surveillance-sharing, signaling their determination to launch a Bitcoin spot ETF in collaboration with reputable issuers. This development has sparked positive market reactions, as evidenced by the surge in Coinbase and Bitcoin-related stocks. Despite consistent denials from the SEC in recent years, asset management firms and exchanges are unwavering in pursuing a bitcoin ETF to overcome regulatory obstacles and bring this long-awaited product to investors.
