In a move aimed at complying with regulatory standards and enhancing investor protection, exchange operator Cboe Global Markets has modified five spot Bitcoin Exchange-Traded Fund (ETF) applications to incorporate surveillance-sharing agreements (SSAs) with Coinbase. The amendments were submitted to the United States Securities and Exchange Commission (SEC) on July 11 for ETFs proposed by Invesco, VanEck, WisdomTree, Fidelity, as well as the joint fund by ARK Invest and 21Shares.
By entering into SSAs with Coinbase, Cboe intends to meet the SEC’s guidelines established in March, which emphasize the importance of comprehensive surveillance-sharing agreements with regulated markets of significant size that relate to the underlying or reference bitcoin assets. These agreements are seen as a proactive measure to prevent fraudulent conduct within the cryptocurrency industry and safeguard the interests of investors.
Spot Bitcoin ETF applications have gained significant attention recently, with various asset management firms such as Fidelity, Invesco, Wisdom Tree, Valkyrie, and even BlackRock, submitting filings seeking SEC approval for their BTC ETFs. Coincidentally, Nasdaq also resubmitted its application to list BlackRock’s ETF, including an SSA with Coinbase.
The news of Cboe’s amended filings had a positive impact on Coinbase’s share price, which surged nearly 10% following the announcement—the highest level it has reached since August 16, according to Google Finance. However, it is worth noting that Coinbase is currently engaged in a legal battle with the SEC over allegations of offering unregistered securities.
By integrating SSAs with Coinbase, Cboe aims to enhance market integrity and mitigate potential risks associated with Bitcoin ETFs. This development highlights the growing interest in cryptocurrency ETFs and the industry’s commitment to meeting regulatory requirements in order to gain widespread adoption.
Conclusion
Overall, Cboe’s decision to include Coinbase surveillance agreements in their Bitcoin ETF filings underscores the importance of compliance and investor protection within the cryptocurrency market. As the industry continues to evolve, regulatory measures such as SSAs play a crucial role in instilling confidence among investors and facilitating the integration of digital assets into traditional financial systems.