Valkyrie, a cryptocurrency fund manager, has filed an application for a spot bitcoin exchange-traded fund (ETF) in the United States. The filing includes a "monitoring sharing agreement" with Coinbase, allowing the Nasdaq stock exchange to obtain supplemental a access to data on spot bitcoin transactions. The resubmission of the proposed rule change by Nasdaq aims to enable spot bitcoin listings, following the SEC's request for clearer and more comprehensive filings.
Other asset managers, including BlackRock and Fidelity, have also made similar resubmissions recently, incorporating surveillance sharing agreements into their filings. These agreements allow the exchanges to provide additional data and monitoring capabilities to ensure compliance with regulatory requirements. The SEC's statement on June 30 indicated That the previous filings for crypto ETFs with Nasdaq and CBOE lacked clarity, suggesting that meeting regulatory arrangements could improve the chances of obtaining approval.
Valkyrie's latest attempt to apply for a spot BTC ETF comes after its previous applications, which date back to 2021. While the company successfully launched an ETF tied to bitcoin futures in October 2021, no ETFs linked to spot cryptocurrencies have received approval from the SEC thus far. Various companies have sought approval for cryptocurrency investment vehicles from the SEC over the years, but without success.
Grayscale Investments, after the SEC rejected its spot bitcoin ETF in June 2022, filed a lawsuit alleging inconsistent treatment of similar investment vehicles by the regulator. The ongoing efforts by cryptocurrency fund managers and exchanges to gain approval for spot bitcoin ETFs demonstrate the industry's desire to Provide regulated investment options for cryptocurrencies in the United States.
