BlackRock and Coinbase alliance was officially revealed in the new filing to the SEC.
Asset management giant BlackRock's recent step towards establishing a spot Bitcoin exchange-traded fund (ETF) has garnered much attention.
However, the latest filing unveiled a noteworthy "surveillance-sharing agreement" with the renowned cryptocurrency exchange Coinbase.
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In a filing submitted on June 29th to the United States Securities and Exchange Commission (SEC), the details of a proposed rule amendment by Nasdaq, which focus on enabling the listing of BlackRock's Bitcoin ETF.
The filing also discloses the particulars of a June 8th pact between Nasdaq and Coinbase. This agreement aims to enhance the exchange's market surveillance program and facilitate access to data concerning spot Bitcoin trades.
This update comes closely after ARK Investment Management decided to modify its spot Bitcoin ETF application. The revised application now includes a surveillance-sharing agreement with the Chicago Board Options Exchange (Cboe) and an undisclosed cryptocurrency exchange based in the US.
During that time, there were speculations that the unnamed exchange could be Coinbase, potentially creating a conflict with BlackRock's ETF filing.
However, the SEC reportedly commented on June 30th that the crypto ETF filings from Nasdaq and the Cboe weren't “sufficiently clear and comprehensive.” The regulator suggested that all applicants should provide supplementary information about their surveillance agreements.
It is worth noting that BlackRock's first submission for the spot Bitcoin ETF was made on June 15th.
To date, despite receiving numerous applications, the US securities regulator has not given the go-ahead to any spot ETF associated with crypto investments.
This situation prompted Grayscale Investments to take legal action against the SEC in June 2022 following the rejection of its spot Bitcoin ETF. The company argued that the regulator had shown inconsistency in its approach to similar investment entities.
The inclusion of a surveillance-sharing agreement with Coinbase in BlackRock's bid to launch a spot Bitcoin ETF is an intriguing development in the ETF sector. While the result of their application and the future of ETFs tied to cryptocurrencies remain unknown, this innovative approach could have significant implications for future crypto investments.
