VanEck has recently revised its Bitcoin ETF bid, trying to alleviate the SEC concerns. However, the company’s executives expressed their desire for the regulator to treat all such filings with the same scrutiny. This comes after BlackRock, an asset management giant, unveiled its plan to launch a Bitcoin ETF, prompting other firms like Bitwise, WisdomTree, Invesco, and Valkyrie to renew their efforts to bring such a product to the market.
The Cboe, the exchange on which VanEck’s Bitcoin ETF would trade, added a clause in its filing specifying that it plans to enter into a surveillance-sharing agreement with a US-based operator of a spot trade platform for Bitcoin. This language is similar to the one in Nasdaq’s filing for BlackRock’s proposed Bitcoin ETF, leading to speculation that the platform BlackRock is referring to is Coinbase, which would serve as the custodian for the proposed ETF’s Bitcoin holdings.
Matthew Sigel, VanEck’s Head of Digital Assets Research, commented in a Twitter thread that the commercial attractiveness of working as a custodian with BlackRock might have convinced Coinbase to share data it didn’t previously want to share. He also pointed out that there is nothing unique about the surveillance-sharing agreements between Nasdaq and Coinbase that couldn’t be replicated by other exchanges like Cboe.
Notably, the ETFs from WisdomTree, Invesco, Ark Invest, and 21Shares are expected to trade on Cboe, while Valkyrie’s proposed Bitcoin ETF would be listed on Nasdaq, and Bitwise’s proposed spot Bitcoin ETF on NYSE Arca.
Sigel criticized the SEC’s approach to the Bitcoin ETF filings, stating that without knowing the specific preconditions for approval, issuers have been continuously filing updates and refilings, hoping to time their efforts to coincide with a regulatory change-of-heart. This situation might result in a massive revenue harvest for the lucky firm that manages to get its ETF approved first.
The executive also highlighted the lack of clarity in the SEC’s rejection of spot Bitcoin ETFs, suggesting that it might constitute “a denial of due process under the law.” Considering the nearly identical ETF applications submitted, Sigel believes that all issuers should have the same timeline in launching a Bitcoin spot ETF and urges the SEC to “stop picking winners.”
The race for the first-mover advantage in the Bitcoin ETF space has intensified in recent years following the successful launch of ProShares’ Bitcoin futures ETF last year, which gathered around $1 billion on its first day. With the competition heating up for a spot Bitcoin ETF, prospective issuers continue jockeying for position, seeking the financial rewards that come with being first to market.
Source: Blockworks
