The race for a spot Bitcoin exchange-traded fund in the United States entered a dramatic new phase on June 28, 2023, as Cboe BZX Exchange amended its rule filing with the Securities and Exchange Commission to include a surveillance-sharing agreement, paving the way for multiple financial giants to pursue listings. The move, which comes on the heels of BlackRock’s headline-grabbing spot Bitcoin ETF filing earlier in June, has ignited a wave of institutional interest that is reshaping the crypto market landscape.
TL;DR
- Cboe BZX amended its SEC filing on June 28, 2023, adding a surveillance-sharing agreement for spot Bitcoin ETFs
- Fidelity reportedly filed to list its Wise Origin Bitcoin Trust as a spot Bitcoin ETF
- BlackRock’s earlier June filing triggered a market rally, with BTC holding above $30,000
- EDX Markets, backed by Citadel Securities and Fidelity, launched the same week
- 78% of Bitcoin holders were in profit — the highest proportion recorded in 2023
Cboe BZX Takes a Decisive Step
The Cboe BZX Exchange filed an amended rule change with the SEC on June 28, 2023, specifically addressing one of the key concerns regulators have raised in previous spot Bitcoin ETF rejections: market surveillance. By incorporating a surveillance-sharing agreement with a spot Bitcoin market, Cboe aimed to satisfy the SEC’s longstanding requirement that applicants demonstrate the ability to detect and prevent fraudulent and manipulative acts. This amendment marked a significant evolution from prior attempts, which had largely failed to convince regulators that the underlying Bitcoin market was sufficiently resistant to manipulation.
The filing was not an isolated event. Multiple financial firms were actively lining up spot Bitcoin ETF applications in what industry observers described as an unprecedented wave of institutional conviction in the asset class. The coordinated nature of these filings suggested that Wall Street had collectively decided the timing was right to make another serious push into crypto.
Fidelity Reenters the Arena
Among the most notable developments was the reported filing by Fidelity Investments to list and trade shares of its Wise Origin Bitcoin Trust as a spot Bitcoin ETF. Cboe filed with the SEC to list Fidelity’s product, signaling that one of America’s largest asset managers was once again throwing its weight behind direct Bitcoin exposure for traditional investors. Fidelity had previously launched a spot Bitcoin ETF in Canada but had been unable to bring a similar product to U.S. markets due to regulatory headwinds.
Fidelity’s involvement carried particular weight given the firm’s early and sustained commitment to digital assets. Through Fidelity Digital Assets, the company had been providing custody and trading services for Bitcoin since 2018, making it one of the most crypto-credible traditional finance institutions in the space.
BlackRock Effect Drives Market Momentum
The backdrop to these filings was BlackRock’s June 15 application for a spot Bitcoin ETF through its iShares unit, which had already sent shockwaves through the market. The world’s largest asset manager’s entry into the spot Bitcoin ETF race was widely interpreted as a watershed moment for crypto’s institutional legitimacy. Bitcoin’s price surged in response, pushing above the psychologically important $30,000 level and holding steady near $30,086 as of June 28, according to CoinMarketCap data.
Crypto exchange volumes rebounded noticeably in the wake of the ETF filings, as both retail and institutional traders re-entered the market. The surge was driven largely by renewed optimism that the SEC might finally approve a spot Bitcoin product after years of rejections, and the involvement of firms like BlackRock and Fidelity lent credibility to that thesis.
EDX Markets Launches With Heavyweight Backing
Adding to the institutional momentum, EDX Markets — a new crypto exchange designed specifically for institutional investors — launched during the same week. Backed by Citadel Securities, Fidelity Digital Assets, and Charles Schwab, EDX represented a new breed of crypto trading venue built to meet the compliance and operational standards expected by traditional finance. The exchange aimed to address longstanding concerns about market integrity that had been cited by regulators as obstacles to broader institutional participation in crypto.
Profitability Signals Broad Market Health
With Bitcoin’s rally above $30,000, data showed that approximately 78% of Bitcoin holders were in profit — reaching an all-time high proportion for 2023. The metric underscored the degree to which the BlackRock-driven rally had shifted market sentiment from the depths of the 2022 bear market. Ethereum, the second-largest cryptocurrency, was trading around $1,828, while Bitcoin’s total market capitalization stood at approximately $584 billion.
Why This Matters
The convergence of spot Bitcoin ETF filings from BlackRock, Fidelity, and others, combined with the launch of institutional-grade trading infrastructure like EDX Markets, represented a structural shift in how traditional finance was approaching cryptocurrency. Unlike previous bull runs driven by retail speculation or technological hype, this wave was anchored by firms managing trillions of dollars in assets. If the SEC were to approve a spot Bitcoin ETF, it would open the floodgates for pension funds, wealth managers, and retail brokerages to gain direct Bitcoin exposure through familiar investment vehicles — potentially unlocking billions in new capital flows.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
blackrock filing was the catalyst but fidelity quietly building their spot etf was the real signal. they dont move unless they see institutional demand
edx markets launching the same week with citadel backing was huge. tradfi was building the plumbing before the etf even got approved
edex launching with citadel backing the same week as the cboe filing. tradfi wasnt waiting for regulatory clarity, they were building the infrastructure in parallel
Bjorn Citadel launching EDX the same week as the CBOE filing was the real tell. tradfi wasnt waiting for the SEC, they were building the pipes
cboe adding surveillance sharing with the filing
bjarte H is right. citadel launching EDX the same week as the cboe filing was the real signal. tradfi was building execution venues in parallel with the ETF applications
fidelity wise origin trust filing same week as blackrock
blackrock_eye_ Fidelity filing the same week as BlackRock was the signal. institutions dont move unless they see real demand from clients
Citadel backing EDX the same week as the Cboe filing was the real tell. tradfi was building execution venues in parallel with the ETF applications
78% of holders in profit and the etf narrative was just getting started. we all know how this played out but at the time nobody was certain
78% of holders in profit at 30k. imagine what that number looks like now at 100k+. the etf filings were the starting gun
78% of holders in profit while edx markets launches
Cboe adding the SSA to the filing was them literally writing the SECs approval template. gave Gary a face-saving way to say yes
ssetf_ the SSA was Cboe doing the SECs homework. Fidelity filing the same week as BlackRock confirmed the institutional demand wasnt just one firm testing waters
the surveillance-sharing agreement was Cboe doing the SECs homework for them. handed them a framework they could rubber stamp without looking soft on crypto
Blaz H. SSA was literally cboe writing the approval criteria for gary. by the time SEC responded they had no grounds to reject
EDX launching with Citadel the same week was the real tell. tradfi wasnt waiting for approval they were already building the execution layer
surveillance sharing agreement was the key detail everyone missed. cboe basically solved the SECs main objection before they could raise it
index_fund the SSA was clever because it gave the SEC cover. cboe basically handed them a regulatory framework they could approve without looking soft on crypto
index_fund the SSA was Cboe basically doing Garys homework for him. handed the SEC a framework they could approve without losing face
etf_pipette_ the SSA was cboe literally writing the SEC a regulatory escape hatch. handed them a framework they could rubber stamp without looking soft on crypto
etf_plumber_ the SSA was cboe doing the SECs homework but Gensler still sat on it for another year. you can hand them the perfect framework and theyll find a reason to delay
EDX launching with Citadel backing the same week told you everything. the plumbing was being installed before the approval
Citadel launching EDX the same week as CBOE filing was the real signal. Tradfi was building the pipes before SEC approval.
78% of holders in profit at $30K shows how big the ETF narrative was. Can’t imagine what the number looks like now at $100K+.
78 percent of holders in profit at 30k and it still took another year for approval. the SEC was never going to approve until BlackRock forced their hand