Coinbase’s shares spiked to almost $90 following the news that exchange operator Cboe Global Markets filed amended applications of three spot BTC exchange-traded funds, adding surveillance-sharing agreements with Coinbase.
The US Securities and Exchange Commission has yet to decide on the launch of such a product. It remains unknown whether the lawsuit filed against Coinbase by the watchdog will affect its final ruling.
Rising to Almost One-Year High
Cboe Global Markets – an American company that owns the Chicago Board Options Exchange – mimicked Nasdaq’s move and filed applications to list and trade shares of three spot BTC ETFs, including one by Fidelity Digital Assets. Just like the online global marketplace, Cboe added the US-based crypto exchange as a surveillance partner.
The exchange’s shares reacted positively to the development, surging by 10% and exceeding $90 at one point. The last time COIN traded that high was in August 2022.
Possible approval of a spot BTC ETF in the USA might fuel an additional price rally for Coinbase’s stocks. The world’s largest asset managers – BlackRock, Invesco, Valkyrie, and other finance giants have aspirations to do the same.
The SEC, though, has started a legal battle against Coinbase, accusing the marketplace of violating several rules and offering trading services with alleged unregistered securities, such as MATIC, SOL, and ADA. The spat between the entities might play a role in the Commission’s final decision.
Some experts argued that the SEC should greenlight a spot BTC ETF if the interested firms prove the safety of the product. Such is the former Chairman of the securities regulator – Jay Clayton – who recently described the recent filing spree as an “incredible development.”
Ark Invest Saw a Selling Opportunity
The global asset manager spearheaded by the crypto proponent Cathie Wood – Ark Invest – sold 135,152 COIN shares for approximately $12 million.
This is rather unusual for the company, which tends to accumulate Coinbase shares instead of disposing of them. It bought $9.2 million worth of COIN in February and added another $21.6 million shortly after the SEC filed its lawsuit against the exchange last month.
Ark Invest has also joined the spot BTC ETF race. It recently modified its filing, saying it will enter a surveillance sharing agreement (SSA) with “an operator of a United States-based spot trading platform for Bitcoin.”
CEO Wood shared an optimistic view, believing her entity will be the first to receive the long-awaited approval from the SEC.
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