CBOE mirrors BlackRock elements in ARK Invest Bitcoin ETF filing

CBOE amended the filing to launch ARK 21Shares Bitcoin ETF, including a joint surveillance agreement to prevent fraud and market manipulation. These elements are drawn from BlackRock’s filing.

“The exchange proposes to take additional steps […], to expand its ability to obtain information that would be useful for detecting, investigating and deterring fraud and market manipulation,” — according to the updated document.

CBOE intends to sign the aforementioned agreement with the operator of the spot-bitcoin trading platform. The name of the exchange is not disclosed. The partnership would augment the market-surveillance programme.

Earlier, ARK Invest analyst Yassine Elmandjra noted that other applicants could augment their proposals with similar BlackRock agreements.

SEC will review the proposal by 21Shares, ARK and CBOE on August 13, 2023 — ahead of BlackRock’s filings.

That latest development triggered a wave of proposals from other firms. Valkyrie, BlackRock, WisdomTree and Invesco have joined the ETF race. Fidelity Investments is expected to follow suit soon.

So far, the SEC has rejected almost all spot Bitcoin ETF applications. The Commission carved out an exception for ProShares and Valkyrie Investments products based on Bitcoin futures on the Chicago Mercantile Exchange. Grayscale has filed suit against the regulator after the rejection.

Earlier, Circle CEO Jeremy Allaire predicted that the recent wave of applications to launch cryptocurrency spot ETFs based on digital gold would lead to regulatory approval.

Yassine Elmandjra of ARK Invest emphasized that BlackRock’s filing for a spot bitcoin fund could be a “turning point on the path of digital gold to institutional recognition.”