Coinbase Designated as “Surveillance-Sharing” Partner in BlackRock’s Bitcoin ETF Filing

The BlackRock Bitcoin ETF Filing and Coinbase

Asset manager BlackRock has recently filed for a spot Bitcoin exchange-traded fund (ETF), and the filing includes a notable “surveillance-sharing agreement” with popular cryptocurrency exchange Coinbase.

This filing comes after ARK Investment Management made amendments to its spot BTC ETF application, which now includes a surveillance-sharing agreement with the Chicago Board Options Exchange (Cboe) and an unnamed U.S.-based crypto exchange. Speculation has been rife that the undisclosed exchange is Coinbase, which could potentially create a conflict with BlackRock’s ETF application.

SEC’s Call for Clarity on Surveillance Arrangements

The Securities and Exchange Commission (SEC) released a statement on June 30, expressing that the crypto ETF filings with Nasdaq and Cboe lacked sufficient clarity and comprehensiveness. The regulatory body urged applicants to provide additional information regarding their surveillance arrangements. BlackRock originally applied for the spot BTC ETF on June 15.

Despite numerous applications from various market participants, the U.S. securities regulator has yet to approve any spot ETFs linked to cryptocurrencies at the time of publication. Grayscale Investments, after having its spot Bitcoin ETF denied in June 2022, filed a lawsuit against the SEC, alleging inconsistent treatment of similar investment vehicles.