BlackRock Chooses Coinbase as Surveillance Partner, COIN Skyrockets 12%

Key Points:

• BlackRock, Fidelity, WisdomTree, VanEck, and Invesco have resubmitted their ETF applications to the SEC to launch spot BTC funds.
• The ETF launch may break previous ETF launch records.
• Coinbase’s shares surged almost 12% following the news of BlackRock’s endorsement.

BlackRock, one of the fund managers that had to resubmit their ETF applications, due to the Security and Exchange Commission (SEC) claiming that applications submitted by Nasdaq and Chicago Board Options Exchange (Cboe) on their behalf were “inadequate,” has filed again for a Bitcoin ETF.

The original filing contained details of an agreement between Nasdaq and Coinbase from last month. The objective of the agreement was to “supplement the exchange’s market surveillance program” and provide access to spot BTC trade data.

According to reports, if the BlackRock Bitcoin ETF is approved, Nasdaq will receive market data for orders and trades from Coinbase, which it will use to monitor the trading. The SEC has approved futures-based ETFs in the past, but not a spot-based one that is physically backed by the asset, as opposed to CME contracts.

The SEC and Wall Street’s move to control the asset class has been interpreted by industry analysts as a response to the recent crackdown on crypto companies in America.

Cboe has refiled applications on behalf of several other firms, including Fidelity, WisdomTree, VanEck, and Invesco, all of which also listed Coinbase as a surveillance-sharing partner, who were looking to launch spot BTC funds last week.

ETF Store President Nate Geraci has predicted that a spot Bitcoin ETF launch will surpass previous ETF launch records.

In response to the BlackRock endorsement, Coinbase shares surged almost 12%, trading at $80.98 in after-hours trading on July 4, according to MarketWatch. The company stock has had a solid run in 2023 as crypto markets have recovered, with COIN seeing a notable 140% increase since the start of the year, outpacing crypto markets, which have gained around 52% in the same period.

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