Nasdaq Named Coinbase As Surveillance For Groundbreaking Bitcoin ETF Launch

Key Points:

• Nasdaq has refiled an application for a Bitcoin ETF by BlackRock with more details.
• Coinbase will offer market monitoring for the ETF, addressing surveillance concerns.
• Major financial institutions joining the Bitcoin ETF battle bring renewed confidence, despite Coinbase facing a lawsuit from the SEC.

According to an application made public on Monday, Nasdaq refiled an application with the US Securities and Exchange Commission (SEC) to list an exchange-traded fund (ETF) by BlackRock that would represent the price of Bitcoin to include more specifics.

The exchange filed additional paperwork with the SEC indicating that Coinbase Global Inc. would offer market monitoring in support of the world’s biggest asset manager’s proposed ETF. The action occurred after the regulatory body said that issuers’ first filings were unsatisfactory and lacked crucial information.

Fidelity Investments, Invesco, VanEck, 21Shares, and WisdomTree all amended their bids last week, as did a number of other firms.

Cboe Global Markets also submitted applications on behalf of major asset management Fidelity Investments and Ark Invest, both of whom picked Coinbase as its SSA partner.

According to the recent Nasdaq filing, the exchange agreed to a surveillance-sharing deal with Coinbase on June 8. Year to far, Coinbase has accounted for around 56% of dollar-to-Bitcoin trade on US-based platforms.

Based on a view of the SEC’s earlier judgments, the sponsor of a Bitcoin trust must engage in a surveillance-sharing arrangement with a regulated market of considerable scale to achieve regulatory approval.

Analysts believe that monitoring the crypto market will be critical to obtaining SEC clearance for a spot Bitcoin ETF. The monitoring might significantly minimize fraud and market manipulation, which were the primary reasons the SEC rejected about 30 spot Bitcoin ETF applications to yet.

For years, the SEC has denied such petitions, and there was a time in 2022 when most corporations hoped that the agency would modify its approach in the near future. But, the entry of big conventional financial institutions into the battle has sparked renewed confidence.

Last month, the government also sued Coinbase for failing to register as an exchange. Coinbase said in a letter filed last month in federal court in Manhattan that it will ask a judge to dismiss the SEC lawsuit, arguing that the regulator lacks the authority to pursue civil claims because the crypto assets trading on its platform are not “investment contracts,” and thus not securities.

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Harold

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