BlackRock provided a fresh application for a Bitcoin spot market ETF following reports of flaws in the Securities and Exchange Commission’s initial filing. Its success would result in it becoming the first Bitcoin spot ETF to secure regulatory consent.
BlackRock has submitted a revised application for an exchange-traded fund. The fund would target the Bitcoin spot market following the expression of vulnerabilities by regulators regarding its initial attempt.
BlackRock to Leverage Coinbase-Nasdaq Mutual Surveillance Agreement
Nasdaq confirmed the new filing by BlackRock, with the investment company claiming its inclusion alongside Coinbase (COIN). It added that it would conclude a surveillance agreement involving one of the major objections the Securities and Exchange Commission (SEC) raised when declining past applications for Bitcoin spot ETFs.
The filing revealed an expectation by the Spot BTC SSA to be a mutual surveillance-sharing agreement between Coinbase and Nasdaq. This agreement’s objective is to complement the market surveillance program of the exchange.
Coinbase Identified by BlackRock for Protector and Furnishing Market Data
Coinbase, the U.S.’s biggest crypto exchange, will be the proposed EFT’s central platform. In this case, it will serve as its protector and the spot market data for pricing. Additionally, an agreement is in place to offer the same services to Fidelity, an organization aiming to own Bitcoin spot ETF.
The news regarding BlackRock’s filing for the BTF resulted in a surge in Bitcoin’s prices. BlackRock is the globe’s biggest asset manager, and the amount of money under its management in the initial quarter of 2023 was $ 9.5 trillion. A 20% increase in Bitcoin’s prices has been witnessed since the filing’s initial reporting on 15th June, notably because more companies submitted their ETF filings.
The optimism was robust enough to the extent of shrugging off a 30th June Wall Street Journal (WSJ) report claiming the inadequacy of BlackRock’s application by the Securities and Exchanges Commission. The warning shot did not take long to reverberate across the industry. For instance, on the same day as the WSJ report, Cboe acted on behalf of Fidelity’s behalf to hastily change its application for a spot ETF.
Will the Current Applications for Bitcoin ETFs Secure Approval?
Registering a Bitcoin ETF with the Securities and Exchange Commission has been difficult, particularly for funds involving spot market trading. Till now, the agency has not sanctioned any application for such a spot ETF. This is owing to concerns regarding likely manipulation or fraud in the spot market. On the contrary, four Bitcoin ETFs have been approved for futures trading by the agency.
An ETF is a form of investment product linked to stocks, currencies, commodities, or bonds that permit investors to have personal investments in an organization without the need to own a specific asset. Investors can utilize a Bitcoin ETF to invest in the globe’s most prominent and oldest cryptocurrency and not hold it themselves. Instead, they only need to purchase shares that monitor the price of an asset.
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