Coinbase, the popular cryptocurrency exchange, experienced a significant boost in its shares, reaching nearly $90, after Cboe Global Markets, the operator of the Chicago Board Options Exchange, filed amended applications for three spot Bitcoin exchange-traded funds (ETFs). These applications included surveillance-sharing agreements with Coinbase. Although the US Securities and Exchange Commission (SEC) has not yet made a final decision regarding the launch of these products, the outcome of the lawsuit against Coinbase by the regulatory agency remains uncertain and may influence the ruling.
Emulating Nasdaq’s actions, Cboe Global Markets submitted applications to list and trade shares of three spot Bitcoin ETFs, one of which is offered by Fidelity Digital Assets. Similar to the online global marketplace, Cboe established Coinbase as a surveillance partner. This development had a positive impact on Coinbase’s shares, leading to a surge of 10%, with prices exceeding $90. This represents the highest price level for COIN shares since August 2022.
If a spot Bitcoin ETF gains approval in the United States, it could potentially trigger a further increase in Coinbase’s stock prices. Notably, major asset management firms such as BlackRock, Invesco, and Valkyrie also have aspirations to venture into this space.
However, the SEC has initiated a legal battle against Coinbase, accusing the exchange of violating multiple regulations and providing trading services with alleged unregistered securities like MATIC, SOL, and ADA. The ongoing conflict between the regulatory agency and Coinbase may play a role in the SEC’s final decision.
Some experts argue that the SEC should approve a spot Bitcoin ETF if the interested firms can demonstrate the safety of the product. Former SEC Chairman Jay Clayton described the recent surge in ETF filings as an “incredible development.”
Ark Invest, the prominent global asset manager led by cryptocurrency advocate Cathie Wood, sold 135,152 COIN shares for approximately $12 million. This move is somewhat unusual for the company, as it typically accumulates Coinbase shares rather than divesting them. In February, Ark Invest acquired COIN shares worth $9.2 million and added another $21.6 million shortly after the SEC filed its lawsuit against Coinbase last month.
Ark Invest has also entered the race for spot Bitcoin ETFs. The firm recently adjusted its filing, disclosing its intention to establish a surveillance sharing agreement with “an operator of a United States-based spot trading platform for Bitcoin.” CEO Cathie Wood expressed optimism, believing that Ark Invest will be the first entity to receive the long-awaited approval from the SEC.
In summary, the filing of amended applications for spot Bitcoin ETFs by Cboe Global Markets, with surveillance-sharing agreements involving Coinbase, has caused a surge in Coinbase shares. The final decision by the SEC regarding the launch of these ETFs remains uncertain, and the ongoing legal battle between Coinbase and the regulatory agency adds an additional layer of complexity. However, industry experts and major asset management firms are hopeful for the approval of a spot Bitcoin ETF, which could lead to further growth in Coinbase’s stock prices.
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