Nasdaq Resubmits BlackRock’s Spot-Bitcoin ETF Filing with Coinbase as Surveillance-Sharing Partner

Nasdaq Resubmits BlackRock’s Spot-Bitcoin ETF Filing with Coinbase as Surveillance-Sharing Partner

Nasdaq has resubmitted BlackRock’s application for a spot-Bitcoin exchange-traded fund (ETF) on July 3. The resubmission comes after Nasdaq clarified its intention to enter a surveillance-sharing agreement (SSA) with Coinbase, which will serve as the required spot-Bitcoin exchange for the ETF. This move is similar to the applications filed by Cboe Global Markets on behalf of Fidelity Investments and Ark Invest, both of which also selected Coinbase as their SSA partner.

SEC Concerns Over Lack of Clarity

The Securities and Exchange Commission (SEC) had returned the applications filed in June due to a lack of clarity and comprehensiveness. The main concern raised by the SEC was the absence of specific information regarding the inclusion of the spot Bitcoin exchange in the SSA for the ETFs. However, it was widely expected that the exchanges would choose Coinbase for its market share, despite ongoing legal issues with the SEC. The SEC requires the spot Bitcoin exchange to operate a “market of significant size” in order to be eligible.

Industry Awaits SEC Ruling

With numerous spot Bitcoin ETF applications being resubmitted to the SEC, the fate of these applications now lies in the hands of the regulatory body. The industry eagerly awaits the SEC’s ruling, as it has historically rejected similar applications. However, there is renewed optimism due to the involvement of major traditional financial institutions in the ETF space. Research firm Bernstein predicts that the ETF applications will be approved based on the SEC’s previous approval of futures products. Analysts argue that the arguments used to gain approval for futures-based products should also apply to spot-Bitcoin products and should be sufficient to win the regulator’s approval.

Potential Impact of SEC Approval

If the SEC approves the spot-Bitcoin ETF applications, it would mark a significant milestone for the cryptocurrency industry. The introduction of regulated ETFs would provide institutional investors with a more accessible and secure way to invest in Bitcoin. This could lead to increased adoption and potentially drive the price of Bitcoin higher. Additionally, it would further legitimize Bitcoin as an asset class and could attract more mainstream investors.

Overall, the resubmission of BlackRock’s spot-Bitcoin ETF filing with Coinbase as its surveillance-sharing partner reflects the industry’s optimism and growing interest in regulated Bitcoin investment products. With the SEC’s ruling approaching, the cryptocurrency community eagerly anticipates the potential impact and opportunities that the approval of these ETFs could bring.


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