Exchange operator Cboe Global Markets has made an important development in its quest to launch Bitcoin Exchange-Traded Funds (ETFs). The company has amended its filings with the United States Securities and Exchange Commission (SEC) for five spot Bitcoin ETFs to include a surveillance-sharing agreement (SSA) with Coinbase. This move comes after Cboe announced on June 11 that it had reached an agreement with Coinbase to enter into the SSAs.
The SEC has set standards for ETFs that aim to prevent fraudulent conduct and protect investors. One of these requirements is a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying or reference bitcoin assets. By including the SSA with Coinbase, Cboe is ensuring compliance with the SEC’s standards.
Spot Bitcoin ETFs have been a recent focus point in the industry. In addition to Cboe’s filings, other asset management firms have also submitted applications for spot Bitcoin ETFs to the SEC. These include Invesco, WisdomTree, Fidelity, and the joint fund by ARK Invest and 21Shares. BlackRock, a $10 trillion asset management firm, has also filed an ETF for SEC approval.
The involvement of Coinbase in Cboe’s ETF filings has had a positive impact on the cryptocurrency exchange’s stock price. Coinbase shares soared nearly 10% on June 11, reaching their highest price since August 16. This indicates the market’s optimism about the potential approval of Bitcoin ETFs and the collaboration between Cboe and Coinbase.
However, it’s important to note that Coinbase is currently facing a lawsuit with the SEC. The regulator alleges that Coinbase offered cryptocurrencies that it considers to be unregistered securities. Despite this legal battle, the collaboration with Cboe on ETF filings shows that Coinbase remains active in exploring new opportunities in the cryptocurrency market.
In a similar development, the U.S. stock exchange Nasdaq has also refiled its application to list BlackRock’s ETF. Like Cboe, Nasdaq has included an SSA with Coinbase in its application. This further highlights the significance of Coinbase’s participation in ETF filings and its role as a surveillance partner in ensuring the integrity of these investment products.
As the industry eagerly awaits the SEC’s decision on Bitcoin ETFs, the inclusion of surveillance-sharing agreements with Coinbase in these filings strengthens the case for approval. By demonstrating their commitment to preventing fraudulent conduct and protecting investors, Cboe and Nasdaq are positioning themselves as responsible operators in the ETF market.
In conclusion, Cboe Global Markets has amended its filings for five spot Bitcoin ETFs to include surveillance-sharing agreements with Coinbase. This move aligns with the SEC’s standards for preventing fraudulent conduct and protecting investors. The involvement of Coinbase in these filings has had a positive impact on its stock price, indicating market optimism about the potential approval of Bitcoin ETFs. Despite facing a lawsuit with the SEC, Coinbase’s collaboration with Cboe and Nasdaq highlights its continued involvement in exploring new opportunities in the cryptocurrency market. The industry now waits eagerly for the SEC’s decision on Bitcoin ETFs, with the inclusion of surveillance-sharing agreements strengthening the case for approval.
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