BlackRock Refiles for a Spot Bitcoin ETF
- BlackRock listed Coinbase as its surveillance agreement partner.
- The SEC is primarily concerned that a spot Bitcoin ETF could lead to fraud and market manipulation.
- A spot Bitcoin ETF enables investors to track the price of Bitcoin without having to own the underlying asset.
Asset manager BlackRock has updated and resubmitted its application for a Bitcoin-backed exchange-traded fund. The US Securities and Exchange Commission (SEC) had previously said that the company’s first filing lacked clarity.
BlackRock named Coinbase as its surveillance partner and revealed that both parties will soon conclude their agreement. Many believe that this move will improve BlackRock’s aim to secure approval from the SEC, as it addresses one of the regulator’s major objections and reasons for dismissing spot Bitcoin ETF applications.
BlackRock’s filing reads that,
The Spot BTC SSA is expected to be a bilateral surveillance-sharing agreement between Nasdaq and Coinbase that is intended to supplement the Exchange’s market surveillance program.
According to reports, Coinbase will serve as the custodian of the proposed ETF and source of spot market data for pricing. Interestingly, Coinbase will offer similar services to Fidelity, which recently filed an application for a Bitcoin spot ETF.
An ETF is a financial product linked to currencies, bonds, stocks, commodities, etc. It enables investors to participate in the events without really owning the underlying asset. With a Bitcoin ETF, investors can purchase shares that track the price of BTC without actually having to possess any of them.
The US SEC has made it particularly hard for businesses to register a Spot Bitcoin ETF. The US regulator previously expressed concerns that such approval might lead to market manipulation and other forms of fraud. The SEC has yet to approve any spot Bitcoin ETF applications but has given the green light to four Bitcoin ETFs for futures trading.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
