Nasdaq Submits BlackRock’s Bitcoin ETF Amended Proposal After SEC’s Rejection
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Popular traditional finance firm BlackRock has refiled a fresh proposal with regulators through Nasdaq for the Bitcoin exchange-traded fund (ETF).
Coinbase Included in Surveillance-Sharing Agreement
Nasdaq has submitted a new 19b-4 form to U.S. Securities and Exchange Commission (SEC) to indicate that Coinbase Global Inc. will provide transparent surveillance support to BlackRock’s proposed Bitcoin ETF.
This development comes shortly after a similar filing from the CBOE exchange last week was deemed insufficient due to a lack of details that meet the SEC standards.
The amended application addressed one of the significant flaws cited by the SEC when rejecting proposals for spot Bitcoin ETFs in the past.
According to the 19b-4 documents submitted by Nasdaq, the spot BTC SSA is expected to be a bilateral surveillance-sharing agreement between its platform and Coinbase.
The main intention of the new agreement with Coinbase is to bolster transparency as the exchange will be used to supplement the market surveillance program.
Should the SEC approve the proposal, Coinbase will become a custodian of BlackRock’s ETF and spot market data for pricing.
The exchange also has a viable arrangement to provide similar services to other asset managers seeking their own Bitcoin spot ETF, including Fidelity Investments.
Surveillance Strategy May Be the Key to SEC Approval
Several traditional finance companies, including VanEck, 21Shares, Fidelity Investments, and WisdomTree, submitted their spot BTC ETFs application last week.
However, every anticipation for approval fell following the news of the SEC’s dissatisfaction with the filings of these firms, which according to the regulator, were unclear and incomprehensive.
The Wall Street Journal reported that an amendment was quickly done, with the major highlight being the inclusion of a surveillance agreement.
The race for a spot in Bitcoin ETF remains tight as major traditional finance firms are in line to become the first firm to get approval from the SEC.
However, Coinbase is a major player due to its inclusion in a surveillance-sharing agreement as applicants wait for positive statements from the SEC.
While the wait is on, crypto market analysts and observers believe including a surveillance strategy may be the key to securing SEC approval for a spot Bitcoin ETF.
Surveillance would scrutinize market pricing and reduce fraud, deceptive practices, and manipulations.
Crypto Market Finds Optimism as $BTC and $ETH Rallies
The news of filings for spot Bitcoin ETFs has created a newfound market optimism in the crypto sphere as $BTC and $ETH hits $31,000 and $1,955, respectively.
At press time, the two largest crypto assets have recorded 1.22% and 4.26% gains in the last seven days, holding a staggering 69% dominance of the crypto market.
The bullish sentiments of $BTC and $ETH have propelled hot traction in the space from global investors, recording a 24-hour trading volume of $36.72 billion, up to 10% in the past day.
A continuation of the current market growth trajectory may be a catalyst for a massive bully rally which could create exponential gains for traders on old and new altcoins.
Crypto experts believe the idea of a potential spot ETF is exciting for many investors of digital assets because it would provide easy crypto access and potentially trigger a great bullish rally.
Coinbase will play the role of surveillance to prevent fraud or manipulation in the traditional finance space, while the rise of crypto assets will continue and increase economic standards in the long run.
