- July 6, 2023
- Posted by: [email protected]
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In its most recent filing, Bitcoin asset manager BlackRock incorporated a “surveillance-sharing agreement” with Coinbase, a leading cryptocurrency exchange, in its ongoing bid to launch a spot Bitcoin exchange-traded fund (ETF). The document, which was submitted to the US Securities and Exchange Commission (SEC) on June 29, requested that the Nasdaq stock exchange amend its rules to allow the listing of BlackRock’s Bitcoin ETF. Details of a June 8 agreement between Nasdaq and Coinbase were disclosed in the filing. This agreement aimed to supplement Nasdaq’s existing market surveillance program and grant access to data regarding spot Bitcoin trades.
The release of this SEC filing came after ARK Investment Management modified its own spot Bitcoin ETF application, incorporating a surveillance-sharing agreement with the Chicago Board Options Exchange (Cboe) and an undisclosed U.S.-based crypto exchange. Speculation arose that Coinbase was the crypto exchange in question, potentially creating a conflict with BlackRock’s ETF application.
According to reports, the SEC indicated on June 30 that the crypto ETF files submitted to Nasdaq and Cboe lacked adequate clarity and comprehensiveness. The agency suggested that applicants submit more information about their surveillance arrangements. On June 15, BlackRock filed for the first Bitcoin ETF.
As of now, the U.S. securities regulator has not approved any spot ETFs linked to cryptocurrency investments, despite numerous applications from market participants. Following the denial of Grayscale Investments’ spot Bitcoin ETF in June 2022, the company filed a lawsuit against the SEC, alleging inconsistent treatment of similar investment vehicles.
The inclusion of a surveillance-sharing partnership with Coinbase in BlackRock’s latest ETF filing indicates the importance placed on market monitoring and regulatory compliance in the cryptocurrency space. By collaborating with Coinbase, BlackRock aims to enhance its market surveillance program, address the SEC’s concerns, and increase the chances of securing approval for its spot Bitcoin ETF.
