Key takeaways:
- The Nasdaq stock market refiled for a proposed rule change authorizing the listing of a spot Bitcoin ETF for the Valkyrie Bitcoin Fund.
- Valkyrie’s most recent attempt to apply for a spot Bitcoin ETF with the SEC was in June.
The most recent proposal for a spot Bitcoin Exchange Traded Fund (ETF) in the United States from cryptocurrency fund manager Valkyrie followed precedent by incorporating a “surveillance-sharing agreement” with Coinbase.
The Nasdaq stock market refiled for a proposed rule change authorizing the listing of a spot Bitcoin ETF for the Valkyrie Bitcoin Fund on July 3, according to a filing with the U.S. Securities and Exchange Commission (SEC) on that day. The document reveals details of a June 30 agreement between Coinbase and Nasdaq, which entitles Nasdaq to “supplemental access to data regarding spot Bitcoin trades” as part of the agreement.
The disclosure came after similar revisions from asset managers BlackRock and Fidelity in the previous week to provide details on agreements for sharing surveillance data. According to reports, the SEC stated on June 30 that crypto ETF applications filed with the Nasdaq and CBOE were not “sufficiently clear and comprehensive,” making a suggestion that surveillance arrangements would be advantageous to applicants seeking regulatory clearance.
Although the asset manager’s filings go back to 2021, Valkyrie’s most recent attempt to file an application for a spot Bitcoin ETF with the SEC was in June. However, the SEC has never approved a spot ETF tied to cryptocurrency. A Bitcoin ETF that is linked to Bitcoin futures was successfully launched by the company in October 2021.
Over the past few years, numerous companies have attempted to apply with the SEC for such a cryptocurrency investment entity without success. In June 2022, Grayscale Investments filed a lawsuit against the SEC after the regulator rejected its application for a spot Bitcoin ETF, claiming it had failed “to apply consistent treatment to similar investment vehicles.”
Another company that has attempted to enter the market for Bitcoin ETFs is Valkyrie. The final decision will be made by the SEC, though, and that will determine when the product will be available. The launch of a spot Bitcoin ETF is still pending regulatory agency approval at this time. The wave of applications that have been submitted in recent weeks will now only time will tell if that changes.
