The surveillance-sharing agreements are a measure recommended by the SEC in March, which says they can prevent fraud and protect investors.
Exchange operator Cboe Global Markets has amended five spot Bitcoin (BTC) Exchange-Traded Fund (ETF) applications to include a surveillance-sharing agreement (SSA) with Coinbase.
On July 11, Cboe amended filings with the United States Securities and Exchange Commission (SEC) for the ETFs from Invesco, VanEck, WisdomTree, Fidelity and the joint fund by ARK Invest and 21Shares.
Cboe said it had "reached an agreement on terms with Coinbase" to enter into the SSA's which were settled on June 21. The initial filings for the ETFs stated the parties were "expecting to enter" an SSA prior to potentially offering the ETFs.
The SSAs are an attempt to meet the SEC's standards aimed at preventing fraudulent conduct and protecting investors, as outlined by the regulator on March 10:
“[An exchange needs] a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying or reference bitcoin assets.”
Spot Bitcoin ETF applications have been a focus point for the industry lately.
The filings by Fidelity, Invesco, Wisdom Tree and Valkyrie follow the $10 trillion asset management firm BlackRock which also filed an ETF for SEC approval.
On June 29, the U.S. stock exchange Nasdaq also refiled its application to list BlackRock's ETF, similarly inclusive of an SSA with Coinbase.
Cboe's filings pushed Coinbase (COIN) shares up nearly 10% on June 11, reaching their highest price since Aug. 16 according to Google Finance.
Despite the involvement with Bitcoin ETF applications, Coinbase is currently battling out a lawsuit with the SEC for allegedly offering cryptocurrencies the regulator considers to be unregistered securities.(Source)
