Fidelity Partners with Coinbase for Bitcoin ETF Surveillance

Coinbase has been named as the surveillance-sharing partner for several spot bitcoin exchange-traded fund (ETF) applications, including those filed by Fidelity, WisdomTree, VanEck, ARK Invest, Galaxy/Invesco, and BlackRock. The U.S. Securities and Exchange Commission (SEC) had previously rejected bitcoin ETF applications due to the lack of surveillance-sharing agreements with markets of "significant size." Cboe's BZX Exchange, which is working with these ETF issuers, refiled the applications and named Coinbase as its partner. However, the SEC's recent lawsuit against Coinbase for alleged unregistered securities operations may complicate the approval process. The SEC has yet to formally acknowledge the applications and will have an initial 45-day review period, extendable to 240 days.