• Investment manager Valkyrie has named Coinbase as its surveillance-sharing partner for a spot Bitcoin ETF on the Nasdaq stock exchange.
• Surveillance-sharing agreements are necessary for preventing fraud and market manipulation, and the SEC has cited this as a primary reason for rejecting spot Bitcoin ETF applications.
• Valkyrie’s updated filing includes an agreement with Coinbase that it expects to be executed prior to allowing trading of the Commodity-Based Trust Shares.
$1 Billion Asset Manager Names Coinbase As Surveillance Partner
An investment manager with $1 billion in assets under management (AUM) is naming Coinbase as its surveillance-sharing partner in an application to list a spot Bitcoin ( BTC ) exchange-traded fund (ETF) on the Nasdaq stock exchange.
Reducing Fraud and Market Manipulation
Surveillance-sharing agreements are considered a standard market practice for reducing fraud and market manipulation. It is also among the primary reasons that the U.S. Securities and Exchange Commission (SEC) cites for rejecting spot Bitcoin ETF applications.
Term Agreement With Coinbase Executed
In new documents submitted on Wednesday, Valkyrie says that Nasdaq already executed a term agreement to enter into a surveillance-sharing agreement with Coinbase, which accounts for over 50% of the market share of BTC-USD spot trading volume. “On June 30, 2023, the Exchange executed a term sheet with Coinbase to enter into a Spot BTC SSA.“
Key To Regulator’s Approval?
The move could be key to the regulator’s approval for Valkyrie’s spot Bitcoin ETF. The SEC also recently told both Nasdaq and Chicago Board Options Exchange (CBOE) that investment firms BlackRock and Fidelity’s spot Bitcoin ETF applications were unclear and incomprehensive.
Disclaimer
Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets nor is it an investment advisor