BlackRock’s Filing for Spot Bitcoin ETF Reveals Coinbase as Partner for ‘Surveillance-Sharing’

Asset manager BlackRock’s recent filing for a spot Bitcoin exchange-traded fund (ETF) has shed light on its partnership with leading cryptocurrency exchange Coinbase for a “surveillance-sharing agreement.”

In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on June 29, the Nasdaq stock exchange requested a rule change to enable the listing of BlackRock’s Bitcoin ETF. The filing disclosed a collaboration between Nasdaq and Coinbase, initiated on June 8, aimed at enhancing the exchange’s market surveillance program by providing access to data on spot Bitcoin trades.

This development followed ARK Investment Management’s amendment of its own spot Bitcoin ETF application, which included a surveillance-sharing agreement with the Chicago Board Options Exchange (Cboe) and an unnamed U.S.-based crypto exchange. Speculation emerged that the undisclosed exchange was Coinbase, potentially presenting a conflict with BlackRock’s ETF application.

On June 30, the SEC reportedly expressed that the crypto ETF filings with Nasdaq and Cboe lacked sufficient clarity and comprehensiveness. The regulatory body advised the applicants to provide additional information on their surveillance arrangements. BlackRock initially submitted its application for the spot Bitcoin ETF on June 15.

Despite multiple applications from market participants, the SEC has not yet approved any spot ETFs linked to crypto investments. Grayscale Investments, following the rejection of its spot Bitcoin ETF in June 2022, filed a lawsuit against the SEC, alleging inconsistent treatment of similar investment vehicles.

Please note that the information provided in this article is based on available sources and should not be considered as financial or investment advice.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you