BlackRock chooses Coinbase, a prominent asset management firm, has once again submitted its application for a Bitcoin exchange-traded fund (ETF) after the Security and Exchange Commission (SEC) deemed the previous submissions made by Nasdaq and Chicago Board Options Exchange (Cboe) on behalf of BlackRock as “insufficient“.
BlackRock Chooses Coinbase as Surveillance Partner, COIN Skyrockets 12%
In the initial submission, BlackRock included information regarding a recent agreement between Nasdaq and Coinbase. The purpose of this agreement was to enhance the exchange’s market surveillance efforts and enable access to real-time data on Bitcoin spot trades.
Reports indicate that in the event of the approval of the BlackRock Bitcoin ETF, Nasdaq will be granted access to market data on orders and trades from Coinbase, enabling them to effectively monitor the trading activities. While the Securities and Exchange Commission (SEC) has previously given the green light to futures-based ETFs, they have yet to approve a physically-backed, spot-based ETF that directly represents the underlying asset, in contrast to the derivative contracts offered by the Chicago Mercantile Exchange (CME).
Industry analysts interpret the actions of the Securities and Exchange Commission (SEC) and Wall Street as a response to the recent regulatory crackdown on cryptocurrency companies in the United States. In this regard, Cboe has resubmitted applications on behalf of various firms such as Fidelity, WisdomTree, VanEck, and Invesco. These firms, like BlackRock chooses Coinbase, have listed Coinbase as a partner for sharing surveillance data and had intentions to launch Bitcoin funds backed by the actual asset last week.
Nate Geraci, the President of ETF Store, has made a prediction stating that the launch of a spot Bitcoin ETF has the potential to surpass the records set by previous ETF launches.
In response to BlackRock chooses Coinbase endorsement, Coinbase shares experienced a significant surge, rising by almost 12% during after-hours trading on July 4. According to MarketWatch, the shares were traded at $80.98. This boost in stock value comes as Coinbase continues to perform well in 2023, benefiting from the recovery of the crypto markets. Since the beginning of the year, COIN has seen an impressive increase of 140%, surpassing the overall growth of the crypto markets, which have gained around 52% during the same period.
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