Nasdaq refiles Valkyrie's spot Bitcoin ETF application, includes Coinbase as surveillance partner

The most recent filing involving cryptocurrency fund manager Valkyrie’s application for a spot Bitcoin exchange-traded fund (ETF) in the United States followed others by including a “surveillance-sharing agreement” with Coinbase.

According to a July 3 filing with the U.S. Securities and Exchange Commission (SEC), the Nasdaq stock exchange refiled for a proposed rule change allowing the listing of a spot Bitcoin (BTC) ETF fo the Valkyrie Bitcoin Fund. The filing included details of a June 30 agreement with Coinbase aimed at giving Nasdaq “supplemental access to data regarding spot Bitcoin trades”.

Valkyrie also re-filed their 19b-4, like BlackRock they mention specific SSA agreement w/ Coinbase, even seems more aggressive (more use of the words ‘executed’ and ‘agreement’) They also, like BlackRock, call Coinbase largest US spot bitcoin exch h/t @NateGeraci pic.twitter.com/NDYKSzJeq9

— Eric Balchunas (@EricBalchunas) July 5, 2023

The filing followed similar refilings from asset manager BlackRock and Fidelity in the last 7 days to include information on surveillance-sharing agreements. On June 30, the SEC reportedly said that crypto ETF filings with the Nasdaq and the Cboe were not “sufficiently clear and comprehensive,” hinting that surveillance arrangements could work in applicants’ favor for regulatory approval.

Valkyrie’s most recent attempt applying for a spot BTC ETF with the SEC was in June, but the asset manager’s applications date back to 2021. The firm successfully launched an ETF linked to Bitcoin futures in October 2021, but the SEC has neve approved any spot ETF linked to crypto.

Many firms have applied with the SEC over the last few years for such a crypto investment vehicle without success. Following the SEC’s denial of its spot Bitcoin ETF in June 2022, Grayscale Investments filed a lawsuit alleging the regulator had failed “to apply consistent treatment to similar investment vehicles.”

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