Nasdaq refiles BlackRock’s spot-Bitcoin ETF application, names Coinbase as surveillance-sharing partner

Nasdaq has resubmitted BlackRock’s spot-Bitcoin exchange-traded fund (ETF) filing on July 3 after clarifying that it intends to enter a surveillance-sharing agreement (SSA) with Coinbase — which will serve as the spot-Bitcoin exchange required by the SEC.

The move mirrors the other applications filed by Cboe Global Markets on behalf of global asset manager Fidelity Investments and Ark Invest, which also chose to list Coinbase as their SSA partner.

The SEC returned the applications filed over the month of June over a lack of clarity and comprehensiveness. The main point of concern was a lack of specification that the spot Bitcoin exchange would be part of the SSA for the ETFs.

The industry had largely expected the exchanges would pick Coinbase due to its size and market share, despite some concerns arising from its legal battle with the SEC. The regulator stated in its requirements that the spot Bitcoin exchange had to operate a “market of significant size” to be eligible.

With many recent spot Bitcoin ETF applications refiled with the SEC, the ball is now in the watchdog’s court, and the industry is eagerly awaiting its ruling.

The SEC has rejected similar applications for years now, and there was a point in 2022 when most companies had given hope that the regulator would change its stance in the near future. However, major traditional financial institutions entering the fray have encouraged new optimism.

Research firm Bernstein said on July 3 that it expects the ETF applications will be given the green light based on the fact that it approved futures products.

Analysts believe that the arguments used to gain approval for futures-based products also apply to a spot-Bitcoin product and should be sufficient to win the regulator’s approval.

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