BlackRock's Renewed Bitcoin ETF Application Featuring Coinbase Raises Questions on SEC's Scrutiny

BlackRock, the World’s largest asset manager, has submitted a revised application for a Bitcoin-focused exchange-traded fund (ETF) to U.S. regulators through Nasdaq.

The filing, which was done on June 29, named Coinbase Global Inc. as a partner, tasked with providing the so-called surveillance support for the proposed ETF due to its huge dollar-to-bitcoin trading volume in the U.S. Notably, according to the document reviewed by ZyCrypto, BlackRock’s resubmission depict a valid agreement with Coinbase that took effect on June 16.

The decision to amend the application follows recent feedback from the SEC, which deemed initial filings by various issuers such as BlackRock and Fidelity insufficient and lacking the necessary information on the spot bitcoin exchange and surveillance-sharing agreement.

BlackRock’s initial filing on June 15 mentioned the need for a surveillance-sharing agreement without specifying the exchange that would partner with them. However, other companies, including Fidelity Investments, Invesco, VanEck, 21Shares, and WisdomTree, updated their applications and named Coinbase their surveillance partner.

Meanwhile, as BlackRock’s latest filing comes to light, concerns are arising regarding potential conflicts of interest involving the Securities and Exchange Commission (SEC). These concerns stem from the fact that the SEC has recently taken legal action against Coinbase, accusing the exchange of engaging in the sale of unregistered securities.

In a Monday tweet, pro-ripple lawyer John Deaton hit out at the SEC, claiming that BlackRock’s filing exposed the agency’s shortcomings.

“The SEC/Gary Gensler are essentially claiming Coinbase is running an illegal business, yet the largest Asset Manager in the World and others are disclosing their intent to do business with this illegal business. It tells you all you need to know about what’s really going on,” said Deaton 

Ryan Selkins, the founder and CEO of the crypto data research firm Messari, also expressed his views on the matter. In a July 4 tweet, the pundit stated that the recent news of BlackRock, WisdomTree, and Fidelity choosing Coinbase as their exchange partners simply confirmed what was already known; “Coinbase is a legitimate U.S. financial institution, and Gary Gensler is a corrupt crony capitalist.”

In a critical tone, Selkins further remarked that Gary Gensler, the current SEC chairman, is a “corrupt crony capitalist”, adding that he expects significant developments once Gensler steps down from his position, a resignation he believes will be requested by the White House before the year concludes.

Meanwhile, as the debate surrounding the implementation of a U.S. spot Bitcoin ETF unfolds, the World’s largest cryptocurrency has continued to hold strong after an 88% increase year-to-date and a 14% surge in the last month alone. As the SEC continues its scrutiny of Bitcoin spot ETF applications, the industry eagerly awaits further developments, with the expectation that an early approval could propel the price of BTC towards its all-time highs.

At the time of reporting, BTC was trading at $30,209, up just over 1% in the past 24 hours.

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