Main Issue With Original Filing
BlackRock, the world’s largest asset manager, has resubmitted its spot Bitcoin (BTC) exchange-traded fund (ETF) application following Friday’s report that the Securities and Exchange Commission (SEC) returned the application for being “inadequate.” The main issue with the original filing was that it lacked specificity on which exchange the firm would be partnering with for its surveillance-sharing agreement (SSA).
Updated Application with Coinbase
The updated application, filed by Nasdaq with the SEC on Thursday, shows that BlackRock reached an agreement with crypto exchange Coinbase to enter into an SSA. It is expected that a “definitive agreement” will be finalized ahead of trading. The Spot BTC SSA is expected to be a bilateral surveillance-sharing agreement between Nasdaq and Coinbase, which is intended to supplement the Exchange’s market surveillance program.
Other Firms Also Re-filing Applications
Following BlackRock’s move, other firms such as Fidelity, ARK, WisdomTree, VanEck, and Invesco/Galaxy have also re-filed their spot bitcoin ETF applications, naming Coinbase as the SSA exchange. The original BlackRock ETF application filed on June 15 caused a rally in bitcoin and the broader cryptocurrency market, with BTC climbing from $24,850 to a high of $31,480 on June 23.
Bitcoin Price Reaction
Although BTC briefly dropped below $30,000 after the reports of the SEC rejecting the applications, it has since climbed back above $31,000 following the re-filing announcements. At the time of writing, Bitcoin is up 2% on the day and trading at $31,265.