Nasdaq has recently submitted an updated filing for the iShares Bitcoin Trust, which comes just a week after reports that the initial filings from both Nasdaq and the Chicago Board Options Exchange (Cboe) for their Bitcoin (BCT) Spot Exchange Traded Funds (ETFs) were criticized by the Securities and Exchange Commission (SEC) for “lacking clarity and comprehensiveness.”
The updated filing from Nasdaq aims to address the shortcomings highlighted by the regulatory body.
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The updated filing for the iShares Bitcoin Trust now includes a surveillance-sharing agreement with Coinbase, which aligns it with similar applications.
The surveillance sharing agreement between Nasdaq and Coinbase involves exchanging information and data related to the trading of BTC. Under the agreement, Coinbase will provide Nasdaq access to its transaction monitoring technology and tools, enabling Nasdaq to ensure that the trading activity related to the iShares Bitcoin Trust is conducted fairly and orderly.
Nasdaq will use the information provided by Coinbase to monitor the BTC market and detect any unusual or potentially manipulative trading activity. This will help Nasdaq to maintain the integrity and transparency of the market and ensure that the iShares Bitcoin Trust operates in compliance with all relevant regulations.
The surveillance sharing agreement is an important step towards gaining approval for the iShares Bitcoin Trust, as the SEC has previously expressed concerns about the potential for market manipulation in the cryptocurrency space.
Using Coinbase’s transaction monitoring technology, Nasdaq hopes to allay these concerns and demonstrate that it has appropriate oversight and monitoring mechanisms.
Furthermore, the iShares Bitcoin Trust will issue and redeem baskets of shares in exchange for an amount of Bitcoin determined by the Trustee on each day the Nasdaq is open for regular trading.
Baskets may be created or redeemed only by Authorized Participants, who pay a transaction fee for each order to create or redeem Baskets.
Last week, the Cboe exchange also submitted similar filings for their Bitcoin ETF, indicating that both exchanges are determined to move forward with their respective offerings. Using a surveillance-sharing agreement with Coinbase is seen as a positive step toward gaining approval from the SEC.
At the time of writing, BTC, the largest cryptocurrency in the market, has shown signs of renewed bullish momentum. After several days of stagnation, BTC has risen over 2% in the past 24 hours and is currently trading at $31,200.
However, in the short term, BTC may encounter resistance at the $31,500 level. If it can surpass this level, it would suggest a win for Bitcoin bulls, a new yearly high, and may pave the way for BTC to reach $32,000 shortly.
Featured image from Unsplash, chart from TradingView.com