BlackRock first applied for the spot BTC ETF on June 15.
BlackRock has recently discovered the Bitcoin ETF depository involving Coinbase as a partner for “surveillance sharing”.
Additionally, the application also appears to include a Nasdaq-Coinbase deal to supplement the exchange’s watchdog program, after the SEC raised questions about the filing’s clarity.
Eric Balchunas, Senior ETF Analyst for Bloomberg, tweeted that “BlackRock has re-filed for spot bitcoin ETF, the resubmission was dated 6/29, Nasdaq just posted, though. They just added Coinbase like everyone else.”
BlackRock’s New Bitcoin ETF Partnership with Coinbase
As anticipated, the latest presentation regarding lead asset manager BlackRock’s bid to launch a spot Bitcoin exchange-traded fund (ETF) included a watch-sharing agreement with Coinbase, a well-known cryptocurrency exchange.
Subsequently, the SEC released the filing, which was amended by ARK Investment Management to include a shared oversight agreement with the Chicago Board Options Exchange (CBOE) and an anonymous US-based cryptocurrency exchange.
Initially, the deal was speculated to be with Coinbase, which would create a conflict with BlackRock’s ETF application. However, on June 30, the SEC said crypto ETF filings with the Nasdaq and CBOE were not clear and comprehensive enough, requesting more information on the oversight arrangements.
BlackRock first applied for the spot BTC ETF on June 15. So far, the SEC has not yet approved any spot ETFs related to cryptocurrency investments, despite numerous requests from the market.
Not surprisingly, Grayscale Investments even filed a lawsuit against the SEC after the rejection of its spot Bitcoin ETF in June 2022, saying the regulator had failed to apply consistent treatment to similar investment vehicles.
Coinbase Registers a +12% After Revealing Its Partnership with BlackRock
Based on the latest news, Coinbase has seen a 12% increase in its share price following the disclosure of its partnerships with spot Bitcoin ETFs. According to The Block, the price increase was caused by the exchange’s collaboration with Fidelity and other major players on the introduction of new exchange-traded funds of spot bitcoin.
BlackRock’s filing announcement for a spot Bitcoin ETF started immense competition in the industry. Fidelity, another wealth management giant, also joined quickly.
With numerous other participants, the industry has seen a surge of players from traditional finance looking to enter the market, which has had a positive impact on Coinbase.
Specifically, the recent gains of 12% correspond to an overall increase of 138% since the beginning of 2023. Furthermore, an outperformance of the overall cryptocurrency market has been observed.
When Fidelity filed its spot Bitcoin ETF filing on June 30, it mentioned the important contribution of Coinbase. In particular, the exchange allegedly helped “monitor manipulation in the spot market,” according to The Block.
Previously, Coinbase, one of the leading cryptocurrency exchanges, experienced quite an up-and-down month, with shares heavily impacted by the actions of the US Securities and Exchange Commission (SEC). This has impacted the perception of the exchange across the industry, leading to a decrease in its overall performance.
What Are the Odds of BlackRock’s Bitcoin ETF Being Approved by the SEC?
According to Bloomberg senior analyst Eric Balchunas, BlackRock’s Bitcoin ETF has a 50% chance of being approved by the US Securities and Exchange Commission (SEC). Specifically, Balchunas said the new ETF has a fair chance of getting the coveted approval.
Furthermore, he suggested that this move could be an attempt by the regulator to “save face” by accepting the presence of traditional finance in the cryptocurrency space.
By Audy Castaneda
