The latest filing submission regarding BlackRock’s aspiration to launch a Bitcoin exchange-traded fund (ETF) spotlights a ‘surveillance-sharing’ alliance with digital currency exchange, Coinbase. This followed after the SEC reportedly commented on the filing’s ambiguity.

The latest submission related to BlackRock’s efforts to roll out a spot Bitcoin ETF revealed a ‘surveillance-sharing agreement’ with the digital currency trading platform, Coinbase. In a filing to the U.S. Securities and Exchange Commission (SEC) dated June 29, the Nasdaq stock exchange reapplied for a proposed rule change to accommodate the listing of BlackRock’s Bitcoin ETF. The filing encompassed details of an agreement between the Nasdaq and Coinbase, dated June 8, aimed at augmenting the exchange’s market surveillance program and enabling access to data on spot Bitcoin transactions.

The SEC filing disclosure occurred after ARK Investment Management revised its spot Bitcoin ETF application to incorporate a surveillance-sharing agreement with the Chicago Board Options Exchange (Cboe) and an unnamed U.S.-based digital currency exchange. Speculations were rife at the time that the undisclosed exchange was Coinbase, which appeared to place it at odds with BlackRock’s ETF application.

On June 30, the SEC allegedly stated that cryptocurrency ETF filings with the Nasdaq and the Cboe were lacking in clarity and comprehensiveness, suggesting that the applicants should furnish further information on surveillance arrangements. BlackRock first lodged its application for the spot Bitcoin ETF on June 15.

As of the moment, the U.S. securities regulator has yet to approve any spot ETF related to cryptocurrency investments, despite receiving several applications from market stakeholders. After its spot Bitcoin ETF application was declined in June 2022, Grayscale Investments filed a lawsuit against the SEC, alleging inconsistent treatment of comparable investment vehicles by the regulator.