Nasdaq Refiles Bitcoin ETF Application with Coinbase as Surveillance Partner, Introducing Valkyrie’s Spot ETF.

Valkyrie’s Bitcoin ETF Application Includes Surveillance-Sharing Agreement with Coinbase

Cryptocurrency fund manager Valkyrie recently refiled its application with the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF). This refiling included a “surveillance-sharing agreement” with Coinbase, similar to other refilings from asset managers BlackRock and Fidelity in the past week.

On June 30, the SEC suggested that surveillance arrangements could increase the likelihood of regulatory approval for crypto ETFs. Valkyrie has been trying to get a spot BTC ETF approved since 2021, and in October of that year the firm successfully launched an ETF linked to Bitcoin futures. However, the SEC has yet to approve any spot ETF linked to cryptocurrency.

In recent years, many firms have attempted to obtain approval from the SEC for a crypto investment vehicle, yet have been unsuccessful. Following the SEC’s denial of the Bitcoin ETF in June 2022, Grayscale Investments initiated a lawsuit, claiming that the regulator had not applied the same standards to similar crypto currency investments.