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BlackRock has filed a new filing for a Bitcoin spot market ETF after the SEC found flaws in its first filing. If approved, this would be the first bitcoin spot ETF to receive regulatory approval.
In a new filing filed through Nasdaq, the asset management firm revealed plans to address one of the Securities and Exchange Commission’s (SEC) key objections by entering into a surveillance agreement with Coinbase, the top U.S. crypto exchange.
The amended filing states that BlackRock’s proposed exchange-traded fund (ETF) will rely heavily on Coinbase, which acts as a custodian and provides spot market data for pricing.
The asset manager wants to establish a bilateral surveillance agreement called Spot BTC SSA between Nasdaq and Coinbase to improve market surveillance. This agreement is intended to complement the exchange’s existing market surveillance program.
News of BlackRock’s application for a bitcoin spot ETF caused the price to spike significantly. Since the initial report on June 15, the cryptocurrency has seen a 20% gain in value. This positive market sentiment continued despite a June 30 report noting that the SEC found BlackRock’s initial filing to be inadequate.
The SEC has raised concerns about possible fraud or manipulation in the spot market in the past, making registering a bitcoin spot ETF a challenge.
In particular, no application for such an ETF has been approved to date. However, the SEC has approved four Bitcoin ETFs related to futures trading, highlighting the difference between the two types of ETFs.
ETFs allow investors to invest in various assets without owning them directly, including commodities, currencies, stocks or bonds. A Bitcoin ETF allows investors to participate in the price movement of Bitcoin without actually owning the cryptocurrency. Instead, they can buy shares that reflect the value of the digital asset.
Following BlackRock’s revised filing, other companies quickly jumped into the race by submitting their own ETF filings. Fidelity, which has partnered with Coinbase for similar services, saw its exchange operator Cboe change its application for a bitcoin spot ETF on the same day as the Wall Street Journal report.
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