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The Nasdaq exchange has resubmitted its application to list BlackRock's proposed exchange-traded fund (ETF) for bitcoin. In doing so, they have followed suit with other competitors by designating the U.S. exchange Coinbase as the platform to be monitored under a surveillance-sharing agreement.
The decision to refile the application comes in response to feedback received by applicants for spot bitcoin ETFs from U.S. securities regulators. The regulators stated that the initial filings were considered "inadequate" due to the absence of the partner's name in the surveillance-sharing agreements, which are crucial in safeguarding against market manipulation.
Subsequent updates have been made to various pending applications, including one submitted by Fidelity, a competitor in the money-management industry, which now includes Coinbase as the designated partner for surveillance-sharing agreements. To obtain regulatory approval, sponsors of bitcoin trusts are required to establish a surveillance-sharing agreement with a regulated market of substantial scale, as per the SEC's previous rulings.
Nasdaq recently announced a new filing stating that on June 8, they reached an agreement with Coinbase regarding a surveillance-sharing arrangement. The filing reveals that Coinbase has accounted for around 56% of the dollar-to-bitcoin trading volume on U.S.-based platforms so far this year.
The initial filing on June 15 for a BlackRock ETF included a provision for a surveillance-sharing agreement; however, it did not specify the exchange that would be involved in the partnership.
On Friday, an article in the Wall Street Journal revealed that representatives of Nasdaq and Cboe were informed by Securities Exchange Commission (SEC) officials that their applications for listing bitcoin ETFs were deemed "inadequate." This determination was based on the fact that the applications had neglected to include the name of the surveillance-sharing partner, as reported by undisclosed sources.
On Friday, Cboe's BZX Exchange announced that it has chosen Coinbase, a leading cryptocurrency exchange, as the designated market for its surveillance-sharing agreement. This decision was made as Cboe resubmitted applications for spot bitcoin exchange-traded fund (ETF) offerings. Cboe is collaborating with prominent companies such as Fidelity, WisdomTree, VanEck, ARK Invest, and Galaxy/Invesco to facilitate the launch of these ETFs.
The money managers are eagerly aiming for success in launching a bitcoin spot ETF, a prospect that has been consistently denied by the U.S. Securities and Exchange Commission (SEC) for years.
Coinbase (COIN) shares have experienced a notable surge of approximately 8% within the last 24 hours. Additionally, stocks associated with Bitcoin, such as Microstrategy, have seen a remarkable rise of 35% in the past day.
