Documents recently revealed that asset manager BlackRock's attempt to launch a spot bitcoin exchange-traded fund (ETF) includes a "monitoring sharing agreement" with cryptocurrency exchange Coinbase. The agreement, disclosed in a June 29 filing with the US Securities and Exchange Commission (SEC ), outlines a partnership between Nasdaq and Coinbase aimed at enhancing the exchange's market surveillance program and granting access to spot BTC transaction data. This development is part of BlackRock's ongoing efforts to obtain approval for its Bitcoin ETF listing.
In addition, the Nasdaq stock exchange has resubmitted a proposed rule change to the SEC, seeking permission for BlackRock's Bitcoin ETF. The filing, made on June 29, includes details of the monitoring sharing agreement between Nasdaq and Coinbase, which was signed on June 8 . The agreement is designed to bolster Coinbase's market surveillance program and provide access to spot BTC transaction data. By resubmitting the rule change, Nasdaq aims to facilitate BlackRock's entry into the Bitcoin ETF market.
Meanwhile, ARK Investment Management has amended its application for a spot BTC ETF prior to SEC filings. The updated application now includes provisions for oversight sharing with Cboe and an undisclosed US cryptocurrency exchange protocol. Earlier speculation suggest ed that the agreement might involve Coinbase, raising concerns about potential conflicts with BlackRock's ETF application. However, specific details have not been disclosed. The SEC recently advised applicants to provide clearer and more comprehensive information on regulatory arrangements, underscoring the need for greater transparency in crypto ETF filings with Nasdaq and CBOE.
Despite a surge in applications from various market participants, US securities regulators have not yet approved any spot ETFs tied to cryptocurrency investments. This includes BlackRock's application for a spot BTC ETF, which was initially submitted on June 15. The SEC's recent comments indicate that the filings made by crypto ETF applicants to Nasdaq and CBOE were deemed insufficient in terms of clarity and comprehensiveness. In response, Grayscale Investments, after its spot bitcoin ETF was rejected in June 2022, filed a lawsuit against the SEC, all inconsistent treatment of similar investment vehicles. At present, the approval of crypto-related ETFs remains pending, leaving market participants eagerly awaiting further developments.
