The Future of Bitcoin ETFs: Enhanced Surveillance and Inevitable Approval

BlackRock's application for a spot bitcoin ETF in the U.S. includes a mechanism that allows suspicious trades to be flagged to authorities. The application has sparked a wave of follow-on filings with surveillance-sharing agreements. However, what may influence the SEC's decision is an information-sharing deal that gives regulators the right to demand additional background information. This agreement allows regulators and ETF providers to pull data from the exchange, including personally identifiable information. The inclusion of an information-sharing agreement, rather than just surveillance sharing, is seen as a positive step towards approval by the SEC.