Coinbase Shares Surge Following Cboe’s Announcement of Collaboration

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Coinbase, the leading cryptocurrency platform in the United States, saw its shares climb by 13% on Monday. This surge occurred in the wake of exchange operator Cboe’s announcement that it’s partnering with Coinbase to introduce a spot Bitcoin exchange-traded fund (ETF).

Cboe Resubmits Bitcoin ETF Application

On Friday, Cboe refiled an application with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin ETF managed by asset giant Fidelity. In the filing, Cboe identified Coinbase as the crypto platform that would assist in curbing manipulation within the ETF.

The refiling was a response to the SEC’s concerns about Cboe’s original application, which did not specify which crypto-trading platforms would aid in detecting fraudulent activity in the Bitcoin markets. This information was disclosed by a person familiar with the situation.

The SEC has voiced similar concerns to Nasdaq concerning a recent filing for a spot Bitcoin ETF by BlackRock, another asset management behemoth.

The SEC and Bitcoin ETFs: A History of Rejections

The SEC has consistently dismissed numerous spot Bitcoin ETF applications over recent years. The regulator maintains that these applications do not meet the standards designed to combat fraudulent and manipulative practices while ensuring investor protection. As a result, the ETF industry is seeking ways to address these concerns.

Despite the regulatory challenges, Coinbase’s shares closed up 11.7% at $79.93 on Monday, marking over a 100% increase this year.

Bitcoin, the world’s premier cryptocurrency, soared to a more than one-year high last month following the Bitcoin ETF filings by BlackRock and Fidelity. However, these filings came shortly after the SEC filed lawsuits against Coinbase and Binance, alleging violations of its rules in a significant crackdown on the digital asset sector. Both entities have denied these allegations.

Ayushi Somani
Ayushi Somani
Ayushi Somani is an academically gifted individual who has a passion for blockchain technology. She is well-versed in the technology, having been an early adopter of cryptocurrency and investing in Bitcoin and several other digital currencies.

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