The SEC proposed the surveillance-sharing agreements in March because it believes they can deter fraud and safeguard investors.
By revising five ETF applications, well-known exchange operator Cboe Global Markets has made a big advancement in the quest of spot Bitcoin (BTC) Exchange-Traded Funds (ETFs). A surveillance-sharing agreement (SSA) with renowned cryptocurrency exchange Coinbase is one of the modifications.
The terms of the SSAs were agreed upon between Cboe and Coinbase, according to the company. On June 21, the agreements were concluded. The expectation of entering into an SSA before potentially launching the ETFs was originally stated in the initial filings for the ETFs.
The SEC’s rules, which seek to stop fraud and protect investors, were addressed by including SSAs. The Securities and Exchange Commission (SEC) declared on March 10 that an exchange must have a thorough surveillance-sharing agreement with a regulated market of size that is connected to the Bitcoin underlying or reference assets.
Applications for spot Bitcoin ETFs have attracted a lot of industry attention. Following a similar effort by BlackRock, a major asset management company with over $10 trillion in assets, which recently submitted an ETF for SEC clearance, Fidelity, Invesco, WisdomTree, and Valkyrie have filed recent ETF applications.
On June 29, Nasdaq, a significant U.S. stock exchange, submitted a revised application to list BlackRock’s ETF, which also includes an SSA with Coinbase. On June 11, Coinbase’s (COIN) share price increased by roughly 10% as a result of Cboe’s updated filings. According to Google Finance, this rise took the shares to their highest price since August 16.
While Coinbase is interested in Bitcoin ETF applications, it is vital to remember that the company is actively fighting the SEC in court. The SEC claims that Coinbase marketed cryptocurrency that it views as unregistered securities, which is what gave rise to the complaint.
Cboe and other companies want to comply with legal requirements, encourage transparency, and improve investor protection by adding SSAs in their applications for Bitcoin ETFs. These developments show how Bitcoin ETFs are becoming more and more important to both the cryptocurrency industry and traditional financial sectors.