Coinbase Surges After Cboe Names Crypto Exchange in Bitcoin ETF Application – On Monday, the stock price of Coinbase, the leading cryptocurrency platform in the United States, surged by 13% following the announcement that exchange operator Cboe is collaborating with the crypto company to establish a spot bitcoin exchange-traded fund (ETF).
Cboe recently submitted a renewed application to the U.S. Securities and Exchange Commission (SEC) to launch a bitcoin ETF, in partnership with asset manager Fidelity. Within the filing, Coinbase was identified as the crypto platform responsible for ensuring the prevention of manipulation within the ETF.
People Also Read: Bittrex Challenges SEC’s Authority in Crypto Lawsuit
According to Reuters, Cboe took steps to address concerns raised by the U.S. Securities and Exchange Commission (SEC) regarding its initial filing for a spot bitcoin exchange-traded fund (ETF). The concerns were related to the identification of crypto-trading platforms responsible for detecting fraud in the underlying bitcoin markets.
Similar concerns were also raised by the SEC in relation to a recent filing by BlackRock for a spot bitcoin ETF, as reported by an anonymous source familiar with the matter. The SEC has been rejecting numerous applications for spot bitcoin ETFs in recent years, stating that they fail to meet the required standards for preventing fraudulent and manipulative practices and safeguarding investors. The ETF industry is actively seeking solutions to address these concerns.
On Monday, Coinbase shares saw an increase of 11.7%, closing at $79.93, and have more than doubled in value this year. The filing by BlackRock and Fidelity to launch bitcoin ETFs last month coincided with a surge in the price of bitcoin, reaching a level not seen in over a year.
People Also Read: Coinbase Files Request for Dismissal of Charges
These filings followed a significant regulatory crackdown on the digital asset sector, with the SEC filing lawsuits against Coinbase and Binance for alleged rule violations. Both companies have denied the allegations. Bitcoin was trading at $31, 029, up 1.32% while Ethereum, the world’s second-largest cryptocurrency, rose 1.94% to $1,964.