- Coinbase will be the supervisory partner for Fidelity, WisdomTree, VanEck, ARK Invest, Invesco and BlackRock
- The day before, the SEC told Nasdaq and Cboe that their applications were inadequate
The Cboe Digital exchange has filed reapplications to create bitcoin-ETFs that will trade on their platform. The company expects to enter into a joint surveillance agreement for Fidelity, WisdomTree, VanEck, ARK Invest, Invesco and BlackRock with the crypto exchange with Coinbase.
The SEC told Cboe and Nasdaq June 30 that their applications were “inadequate” because they did not specify the markets with which fund sponsors were entering into joint surveillance agreements. In clarifying its bid, Cboe said Coinbase is an important part of the U.S. bitcoin market and named the exchange as its partner for such transactions.
“The joint surveillance agreement between Cboe and Coinbase is expected to allow the exchange to access bitcoin spot transaction data that occurs on Coinbase,” Cboe said in a statement.
For years the SEC has rejected such applications. BlackRock has recently applied to the Nasdaq exchange, while other companies are working with Cboe.
The SEC has previously called for joint surveillance agreements with major markets to prevent market manipulation and protect consumer interests. The lack of such agreements has significantly impacted many who have been denied applications by the Commission to create bitcoin ETFs.
The SEC, however, must formally confirm consideration of the applications. The 45-day review period will begin when the application is published in the Federal Register. But in general, the SEC can review an application for 240 days, continually extending the deadline by 45 days.
Besides that, it remains to be seen whether the SEC will accept that Coinbase is a significant regulated bitcoin market.