Nasdaq, the renowned stock exchange, has resubmitted the amended application for iShares Bitcoin Trust, a spot Bitcoin (BTC) ETF led by BlackRock, to the U.S. Securities and Exchange Commission (SEC).
Last week, it was reported by The Wall Street Journal that the SEC expressed dissatisfaction with the previous filings for spot bitcoin ETFs. In response, Cboe, the leading U.S. options exchange, stated its intention to revise its filings. Following suit, Cboe updated the spot bitcoin ETF filings for Fidelity, Wisdomtree, Vaneck, and Invesco.
Amended Filing by Nasdaq Includes Coinbase as SSA Partner
At that time, it was unclear whether BlackRock had updated its registration. However, on June 29, Nasdaq amended the BlackRock spot bitcoin 19b-4 filing, designating Coinbase as the surveillance-sharing agreement (SSA) partner, just like the other resubmissions.
One quick technical note: this is Nasdaq who updated this filing not BlackRock but it's BlackRock's ETF at end of day.
— Eric Balchunas (@EricBalchunas) July 3, 2023
A surveillance-sharing agreement (SSA) is a cooperative arrangement between organizations aimed at exchanging surveillance information. In the case of an ETF, an SSA helps enhance security and ensure public safety by sharing information related to market surveillance.
According to details revealed in BlackRock’s filing, the SSA between Nasdaq and Coinbase is expected to be a bilateral agreement that supplements the exchange’s market surveillance program.
Regulatory Hurdles: SEC’s Continued Scrutiny
Despite numerous applications from market participants, the U.S. securities regulator has yet to approve any spot ETF linked to crypto investments. The SEC’s concerns over market manipulation and lack of consistent treatment for similar investment vehicles have contributed to the denial of spot Bitcoin ETFs in the past.
However, with major players like BlackRock and Nasdaq resubmitting their filings and incorporating reputable partners like Coinbase, the possibility of gaining regulatory approval may increase.
As the demand for cryptocurrency investment products increases, multiple traditional finance firms are racing to launch a spot Bitcoin ETF. However, they face regulatory challenges as the SEC continues to scrutinize applications, emphasizing the need for robust market surveillance and investor protection measures.
While the approval of a spot Bitcoin ETF remains uncertain, the resubmissions by Nasdaq indicate a growing recognition of the potential for regulated Bitcoin investment products. Investors eagerly await the SEC’s decision on these applications, which could mark a significant milestone in the mainstream adoption of cryptocurrencies.