The world of cryptocurrency is always pulsating with a new revelation or reinvention. Case in point, the Nasdaq exchange has once again filed its application to list the proposed bitcoin exchange-traded fund of BlackRock. Notably, they’ve designated the famed U.S. exchange Coinbase as the regulated market to be monitored in the agreement that aims to guard against market manipulation, also known as the surveillance-sharing agreement.
This reapplication by Nasdaq was reportedly informed by feedback offered by U.S securities regulators who deemed previous applications for bitcoin ETFs as “inadequate” without the explicit mention of the partner in surveillance-sharing agreements. It is noteworthy to mention that BlackRock’s money-management competitor, Fidelity, has also updated its application to feature Coinbase as its surveillance-sharing partner.
The intricate aspect as to why this resurfacing agreement is significant is that securing approval from regulators, as suggested by the SEC’s previous rulings, requires the sponsor of a bitcoin trust to enter into a surveillance-sharing agreement with a regulated market boasting considerable size. The refiled application disclosed that Nasdaq has agreed terms with Coinbase on a surveillance-sharing agreement, considering Coinbase represents around 56% of dollar-to-bitcoin trading conducted on U.S. platforms this year.
Despite the strides made, there is some skepticism that lingers on. The Wall Street Journal reported that officials from the Securities Exchange Commission (SEC) considered the bitcoin ETF listing applications submitted by Nasdaq and Cboe to be lacking due to the omission of the name of the surveillance-sharing partner. Nonetheless, the initial application filed by BlackRock for the surveillance-sharing agreement didn’t specify the exchange that would partake in the agreement.
This reshuffling of alliances and strategies distinctly illustrates the ongoing challenge facing money managers such as Fidelity, WisdomTree, VanEck, ARK Invest, and Galaxy/Invesco. They are trying to make history by successfully launching a bitcoin spot ETF, a feat which the U.S. Securities and Exchange Commission (SEC) has been rejecting for years.
Markets react quickly to such developments, Coinbase shares, for instance, have risen approximately 8% in the past 24 hours. Even more telling, Bitcoin-adjacent stocks are also on the rise with Microstrategy’s stock leaping 35% over the same period. Will these renewed attempts and alliances finally break the long-standing hindrance to launching a Bitcoin spot ETF? Only time will tell.
Source: Coindesk
