- Nasdaq resubmits BlackRock’s Bitcoin ETF application to address SEC concerns.
- The SEC rejected previous Bitcoin ETF filings, citing investor protection and fraudulent practices.
- Coinbase’s involvement in market surveillance enhances the ETF proposal’s chances.
In a significant move, Nasdaq (NDAQ.O) has refiled an application to list a Bitcoin ETF by BlackRock Inc. (BLK.N). This step came after the initial filing faced criticism from the U.S. Securities and Exchange Commission (SEC).
As per sources, the watchdog deemed the earlier filing unclear and incomplete. However, Nasdaq remains undeterred. It strives to address these concerns, as the newly submitted application shows.
On the contrary, in recent years, the SEC has rejected numerous Bitcoin ETF applications, including one from Fidelity in early 2022. The filings, it claimed, failed to meet the stringent standards designed to deter fraudulent practices. These regulations protect not just investors but also the public interest.
Moreover, the resubmitted application brings new details. It enlists Coinbase Global Inc. (COIN.O) as a collaborator to provide market surveillance. As a result, bolstering the ETF proposal from BlackRock, the world’s largest asset manager.
In addition, this partnership with Coinbase comes at a contentious time. Last month, the SEC sued Coinbase for not registering as an exchange. Coinbase, in response, is gearing up to contest this lawsuit in a Manhattan federal court.
The company maintains that the SEC doesn’t have the authority to pursue civil claims. Their argument? The crypto assets traded on its platform aren’t “investment contracts” or “securities.
In conclusion, this renewed ETF push reflects an industry aiming to bounce back after a challenging 2022. The past year has seen several cryptocurrency ventures falter. Sam Bankman-Fried’s FTX, for instance, experienced a spectacular collapse.
Besides, the Bitcoin ETF application refiling adds new impetus to the digital asset space. If approved, the ETF can provide a more accessible route for investors to engage with Bitcoin. Hence, resolving this ongoing saga with the SEC carries significant implications for the broader crypto market. Further, the upcoming verdict will undoubtedly shape cryptocurrency’s future in finance.