Famous companies are rushing to file applications to the U.S. Securities and Alternate Fee (SEC) in response of the current spike in interest in Bitcoin ETFs. This growing enthusiasm denotes a critical turning point in the development of Bitcoin funding options.
Continue reading to find out about the most current changes to this region.
The Battle for Bitcoin ETF Spots
Famous companies including Constancy, WisdomTree, VanEck, ARK Make Investments, Galaxy/Invesco, and BlackRock have all submitted applications for spot Bitcoin ETFs in the past few weeks. These businesses have made the decision to launch a product that the SEC has previously rejected.
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Notably, as stated in the resubmitted applications, Coinbase has announced its collaboration with Constancy and other Bitcoin ETFs to provide surveillance services. This partnership highlights Coinbase’s growing importance and commitment to market governance and surveillance.
Coinbase and Cboe: A Perfect Pair?
According to the resubmitted applications for its spot Bitcoin ETF issuers, Cboe’s BZX Alternate has selected Coinbase as its preferred market for a surveillance-sharing agreement. This decision comes after the Wall Street Journal cited the SEC’s criticism of the preliminary justifications for neglecting to identify the target market in the surveillance-sharing agreements.
Additionally, read: Breaking News: Coinbase v. SEC Decision Set on July 13
In the most recent purposes, Cboe recognizes Coinbase’s important role in USD-denominated and U.S.-based Bitcoin trading. The purpose of Cboe’s partnership with Coinbase for surveillance-sharing is to strengthen its position in the Bitcoin ETF market and address the SEC’s concerns about market monitoring.
Understanding the Spot BTC SSA’s Importance
The expected surveillance-sharing agreement, also known as Spot BTC SSA, aims to provide Cboe more access to information on spot Bitcoin exchanges made on Coinbase. This information will improve Cboe’s surveillance programmed for commodity-primarily based belief shares, in line with the Worldwide Surveillance Group’s (ISG) information-sharing procedures.
The SEC has often stressed the importance of surveillance-sharing agreements with markets of “important dimension.” These agreements are crucial for protecting consumers, preventing market manipulation, and discouraging bad behaviour. The SEC’s past rejections of the idea of a Bitcoin ETF were largely based on the lack of such agreements.
Pending SEC Evaluation
There has been no formal acknowledgement from the SEC regarding the evaluation of such purposes. The files will initiate a 45-day review period after being published in the Federal Register. This period may be extended by the SEC to a maximum of 240 days, allowing for a thorough examination of the objectives.
The surveillance-sharing settlement’s strategic decision by Cboe to partner with Coinbase demonstrates its commitment to legal compliance and market integrity. By meeting the SEC’s requirements, Cboe hopes to improve regulation of the cryptocurrency industry and maybe speed up the approval of Bitcoin ETFs.