Nasdaq Joins Rivals in Filing for Bitcoin ETF Listing, Coinbase as Surveillance-Partner

Nasdaq has resubmitted its proposal for a Bitcoin exchange-traded fund (ETF) with an important update in an effort to speed up the approval procedure. According to recent rumors, the business has now designated Coinbase as the market to be watched in a surveillance-sharing deal, much like its rivals.

According to regulatory response on spot Bitcoin ETF registrations, they were considered “inadequate” because they lacked the partner identification required to prevent market manipulation. BlackRock, a well-known Nasdaq rival in the money management space, has recently changed its software and added Coinbase as a partner in security.

The arrangement with Coinbase was concluded on June 8, according to a recent report by Nasdaq. Being a major participant, Coinbase is an excellent fit for this relationship since it presently controls over 56% of dollar-to-Bitcoin trading on American platforms year to date.

Bitcoin ETF Prospects Fuel Coinbase and Bitcoin-Adjacent Stocks

BlackRock first stated the requirement for a surveillance-sharing arrangement in its file from June 15 but left out the name of the exchange partner. Later, according to unidentified sources cited by the Wall Street Journal, SEC authorities warned Nasdaq and Cboe representatives that their applications were “inadequate” because of this omitted information.

After that, when resubmitting spot Bitcoin ETF fund applications, Cboe’s BZX Exchange additionally listed Coinbase as its market for the surveillance-sharing arrangement. By successfully establishing a Bitcoin spot ETF in partnership with companies like Fidelity, WisdomTree, VanEck, ARK Invest, and Galaxy/Invesco, Cboe hopes to make history after having its previous attempts to do so rejected by the U.S. Securities and Exchange Commission (SEC).

A surveillance-sharing agreement’s importance cannot be overstated. According to the SEC’s prior decisions, a Bitcoin trust sponsor must create such an arrangement with a regulated market of significant scale to obtain regulatory clearance.

As these changes take place, Coinbase’s (COIN) stock has experienced a stunning rise of almost 8% in the previous day. Notably, other Bitcoin-related stocks have also increased, with the shares of Microstrategy rising by 35% within the same time frame.

Last but not least, Nasdaq and other key participants have chosen Coinbase as their surveillance-sharing partner to improve their applications, ratcheting up the competition for a Bitcoin ETF listing. As the cryptocurrency business continues to see dynamic developments and increased interest, the market is anxiously awaiting the SEC’s response.