In an exciting development on Tuesday, Cboe took a significant step forward in its pursuit of spot Bitcoin ETFs. The exchange submitted revisions to five proposed ETFs. It disclosed that it had reached an agreement with Coinbase regarding surveillance sharing arrangements.

SEC Yet to Approve Spot Bitcoin ETF

The intention to enter into such an arrangement was previously indicated by Cboe in its filings. However, it was on June 21, 2023, that the exchange and Coinbase finalized the terms. It also executed an associated term sheet for a surveillance-sharing agreement. The Wise Origin BTC Trust, VanEck BTC Trust, WisdomTree BTC Trust, Invesco Galaxy BTC ETF, and ARK 21Shares BTC ETF all quickly updated their filings to reflect these modifications.

The competition for a spot Bitcoin ETF continues to intensify. Companies such as BlackRock and Fidelity are heavy hitters in the industry. They have designated Coinbase as their surveillance sharing partner. This has sparked a race to secure a spot in the Bitcoin ETF in the digital currency world.

The SEC has expressed concerns about fraud and market manipulation in previous applications. It has yet to approve a spot Bitcoin ETF. However, the recent news of Coinbase securing a surveillance-sharing arrangement with Cboe’s BZX Exchange for five of its ETF applications had a significant impact on the market. On Tuesday, Coinbase’s stock surged by as much as 16%, reaching a peak price of $92.15.

The SEC confirmed that the agreement was finalized on June 21 for each of the applications. The documents revealed that Cboe had been in negotiations with Coinbase to establish a surveillance cooperation agreement.

Cboe Updates ETF Filings as Coinbase Deal Solidifies Surveillance Arrangement

According to the filings, the exchange executed a term sheet for a surveillance-sharing agreement (“Spot BTC SSA”) with Coinbase. It is the operator of a major spot trading platform for Bitcoin in the United States. It represents a significant portion of US-based and USD-denominated Bitcoin trading.

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In recent years, the SEC has made surveillance sharing agreements a requirement for all ETF applicants. It also emphasises its importance in preventing market manipulation.

Further adding to the positive momentum, the securities exchange has started supporting BlackRock’s Bitcoin ETF proposal. BlackRock and Nasdaq have announced their collaboration, according to a filing on June 29. This collaboration between two industry big names brings additional strength and credibility to the pursuit of a spot in Bitcoin ETF.