Nasdaq recently introduced a file Updated deposit For iShares Bitcoin Trust, which comes just a week after reports that initial deposits from both the Nasdaq and Chicago Options Exchange (Cboe) for their Bitcoin (BCT) exchange-traded funds (ETFs) have been criticized by the Securities Commission. and the Exchanges (SEC) for “lack of clarity and inclusion.”
Nasdaq’s updated filing aims to address shortcomings highlighted by the regulator.
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The updated iShares Bitcoin Trust now includes a monitoring sharing agreement with Coinbase, which aligns it with similar apps.
The watch-sharing agreement between Nasdaq and Coinbase involves the exchange of information and data related to BTC trading. Under the agreement, Coinbase will provide Nasdaq with access to its transaction monitoring technology and tools, enabling Nasdaq to ensure that trading activity related to the iShares Bitcoin Trust is conducted fairly and orderly.
Nasdaq will use the information provided by Coinbase to monitor the BTC market and detect any unusual or potentially manipulative trading activity. This will help NASDAQ maintain the integrity and transparency of the market and ensure iShares Bitcoin Trust operates in compliance with all relevant regulations.
The watch-sharing agreement is an important step towards gaining approval for the iShares Bitcoin Trust, as the SEC has previously expressed concerns about the potential for market manipulation in the cryptocurrency space.
By using Coinbase’s transaction monitoring technology, Nasdaq hopes to allay these concerns and demonstrate that it has adequate oversight and monitoring mechanisms in place.
Furthermore, the iShares Bitcoin Trust will issue and redeem baskets of shares for an amount of Bitcoin determined by the trustee each day the NASDAQ is open for regular trading.
Baskets can only be created or redeemed by approved participants, who pay a transaction fee for each request to create or redeem baskets.
Last week, the Cboe exchange also filed similar filings for a Bitcoin ETF, indicating that both exchanges are intent on moving forward with their own offerings. The use of the Watch Share Agreement with Coinbase is seen as a positive step towards obtaining approval from the SEC.
At the time of writing, BTC, the largest cryptocurrency in the market, is showing signs of renewed bullish momentum. After several days of stagnation, BTC has gained more than 2% over the past 24 hours and is currently trading at $31,200.
However, in the short term, BTC could face resistance at $31,500. If it can clear this level, it would signal a victory for Bitcoin bulls, a new yearly high, and could pave the way for BTC to reach $32,000 soon.
Featured image from Unsplash, chart from TradingView.com