Reading the tea leaves: Why BlackRock ETF will overcome SEC hurdles

economictimes.indiatimes.com:

Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) has been widely debated and speculated. Despite past rejections, experts such as Elliot Johnson, COO and CIO of Evolve ETF and a pioneer of Bitcoin ETFs in Canada, believe that the BlackRock ETF stands a higher chance of receiving approval from the SEC.

One of the primary concerns expressed by the SEC regarding previous ETF filings has been the underlying spot market. The SEC has consistently highlighted the distinction between the Futures market, which they have confidence in, and the spot market, where the majority of trading volume occurs. The SEC has expressed concerns about the lack of sufficient surveillance and detection of fraud and manipulation in the spot market.

The key to the BlackRock filing lies in the surveillance agreement they have managed to establish between Coinbase and NASDAQ. The rules governing ETFs emphasize the need for surveillance of a venue of significant size where the underlying asset trades. Coinbase, with its substantial size, satisfies this requirement, and the surveillance mechanism is facilitated through NASDAQ's existing technology.

NASDAQ's surveillance system has a proven track record in monitoring various assets traded on its platform. The inclusion of such surveillance measures in the BlackRock ETF filing showcases BlackRock's understanding of the importance of addressing regulatory concerns and its proactive approach to meeting those needs. Another significant factor supporting the approval of the BlackRock ETF is the regulatory environment surrounding Bitcoin.