The finance world eagerly awaits as the pursuit of a Bitcoin ETF takes a major turn. In the past week, Nasdaq, one of the largest exchanges in the United States, has refiled its application to list BlackRock‘s proposed bitcoin ETF, naming Coinbase as the market partner in a so-called surveillance-sharing agreement.
Nasdaq to Implement Market Surveillance Strategy for Bitcoin ETFs
Nasdaq’s move follows feedback reportedly provided by US securities regulators. Regulators found spot bitcoin ETF filings inadequate due to missing partner names in surveillance-sharing agreements. This strategy aims to help guard against market manipulation. Throughout this week, other applicants, such as Fidelity and WisdomTree, updated their paperwork to specify Coinbase as their partner. In the filing, Nasdaq outlined that Coinbase holds approximately 56% of US-based dollar-to-bitcoin trading year-to-date.
Coinbase’s Inclusion in Nasdaq’s 19b-4 Filing Signals Progress
The effort to list a spot bitcoin ETF on exchanges such as Nasdaq has been a years-long endeavor. The SEC has rejected previous attempts, requiring exchanges to have surveillance-sharing agreements with significant partners. Market manipulation prevention is cited as a major factor in this decision. (https://www.smallhandsbigart.com/) Nasdaq’s inclusion of Coinbase in its 19b-4 filing signals progress for advisors and fund managers. The SEC has not responded to the ETF application yet, but they have published the filings for a 45-day review period.
Importance of Addressing SEC’s Concerns in ETF Filings
In a statement to CoinDesk, Graeme Moore, Head of Tokenization for the Polymesh Association, praised Nasdaq’s proactive refiling, stating: “The SEC is very concerned with market manipulation related to Bitcoin prices, and has cited this in almost, if not all, previous rejections. This is because the SEC’s view is that Coinbase and others are not regulated as exchanges and therefore cannot be trusted to ‘prevent fraudulent and manipulative acts and practices.”
Promising Future for the Finance Industry
Nasdaq’s choice to partner with Coinbase has sent shockwaves through the world of finance. Coinbase’s stock has surged 8% in the last 24 hours, and other bitcoin-related stocks like Microstrategy have risen by 35%. The SEC’s recognition of Coinbase as a regulated market for Bitcoin is uncertain, but the momentum seems favorable. The world of finance could potentially be just days away from witnessing the listing of the first Bitcoin ETF spot. Only time will tell, but the future looks promising indeed.
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