The latest filing involving asset manager BlackRock’s attempt to launch a spot Bitcoin exchange-traded fund (ETF) included a “monitoring sharing agreement” with cryptocurrency exchange Coinbase.
According to a filing with the United States Securities and Exchange Commission (SEC) on June 29, the Nasdaq exchange reapplied for a proposed rule change to allow the listing of BlackRock’s Bitcoin (BTC) ETF. The filing included details of a June 8 agreement between Nasdaq and Coinbase “intended to supplement the exchange’s market monitoring program” and provide access to data on spot BTC trades.
The release of the SEC filing followed ARK Investment Management amending its spot BTC ETF application to include a monitoring sharing agreement with the Chicago Board Options Exchange (Cboe) and an unnamed US-based crypto exchange. Some speculated at the time that the deal was with Coinbase, which would apparently put it in conflict with BlackRock’s ETF application.
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The SEC reportedly said on June 30 that crypto ETF filings with Nasdaq and Cboe were not “sufficiently clear and comprehensive,” suggesting that filers include additional information about monitoring arrangements. BlackRock first applied for the spot BTC ETF on June 15.
At the time of publication, the US securities regulator had not approved any spot ETFs related to crypto investments despite numerous applications from market participants. Following the rejection of its spot Bitcoin ETF in June 2022, Grayscale Investments filed a lawsuit against the SEC, alleging that the regulator had not “applied consistent treatment to similar investment vehicles.”
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