BlackRock resubmits Bitcoin spot ETF application, Coinbase provides market surveillance, Coin surges 11%

Yesterday, BlackRock, through the exchange Nasdaq, re-submitted a Bitcoin spot ETF application, indicating that Coinbase will provide market surveillance to support the proposed ETF by the world's largest asset management company. Coinbase's stock price surged by 11%, and Bitcoin officially stabilized above $31,000.

Nasdaq Signs Agreement with Coinbase

Documents resubmitted by Nasdaq indicate that Nasdaq has signed a spot BTC SSA terms agreement with Coinbase, the largest cryptocurrency exchange in the United States, on June 8. This agreement, also known as the previously reported Supervisory Sharing Agreement, took effect on June 16, and will be executed by both parties prior to the listing of an ETF.

Learn more about the "Supervisory Sharing Agreement": Will BlackRock's Supervisory Sharing Agreement Be the First Spot ETF to Lead?

Bitcoin trading on Coinbase accounts for a significant portion of Bitcoin trading in the United States. According to public data reported by active spot Bitcoin platforms in the U.S., trading volume on Coinbase represents approximately 56% of the USD to Bitcoin trading volume on such U.S. platforms. As of June 28, 2023, the value of these platforms is estimated to be around $129 billion. The spot BTC SSA is expected to be a bilateral supervisory sharing agreement between Nasdaq and Coinbase, aimed at supplementing the exchange's market monitoring program. This agreement will enable the exchange to access data on spot Bitcoin trades on Coinbase, such as order and trade market data, and use it for monitoring Bitcoin-based trust stock trading. In addition, Nasdaq may also request additional data from Coinbase to detect and investigate potential manipulation in commodity-based trust stock trading.

Coinbase Stock Price Surges by 11%

Prior to BlackRock's Supervisory Sharing Agreement, the collaborating parties were not specified. However, after reports last Friday that the SEC deemed the information in the spot Bitcoin ETF fund documents submitted by Nasdaq and Cboe Chicago Options Exchange insufficiently clear and comprehensive, Cboe promptly updated and submitted the 19b-4 documents, explicitly stating that they will sign a supervisory sharing agreement with Coinbase. However, while Cboe serves as the exchange for Ark and 21Shares Bitcoin ETFs, JPMorgan Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, and Fidelity's Wise Origin Bitcoin Trust, their documents only mention signing an agreement with Coinbase, unlike Nasdaq, which has confirmed the agreement.

Although Coinbase is the largest cryptocurrency exchange in the U.S., it currently faces issues with the SEC lawsuit. SEC Chairman Gary Gensler has publicly stated that investment advisors should not rely on cryptocurrency exchanges as qualified custodians.

However, as one of the world's largest asset management companies, BlackRock's influence on the market is remarkable. Coinbase surged by 11.71% yesterday, closing at $79.93, with a 22% increase in the past month, well surpassing its low of $46 when facing SEC charges.

Bitcoin also climbed above 31K, reporting 31,169 at the time of writing.