Shares of Coinbase, the leading cryptocurrency exchange, experienced a significant spike, reaching nearly $90, following news that exchange operator Cboe Global Markets had submitted amended applications for three spot Bitcoin (BTC) exchange-traded funds (ETFs).
Notably, these applications included surveillance-sharing agreements with Coinbase.
The launch of such a product is still pending a decision from the US Securities and Exchange Commission (SEC).
The outcome of a lawsuit filed by the regulatory body against Coinbase could potentially influence the SEC’s ruling on the matter.
In a move mirroring Nasdaq’s actions, Cboe Global Markets, the American company that owns the Chicago Board Options Exchange, filed applications to list and trade shares of three spot BTC ETFs. One of these applications was submitted by Fidelity Digital Assets. Similar to the online global marketplace, Cboe included Coinbase, the US-based crypto exchange, as a surveillance partner.
The market responded positively to this development, resulting in a 10% surge in Coinbase shares, with prices surpassing $90 at one point. This level had not been seen since August 2022.
The potential approval of a spot BTC ETF in the United States could further bolster the price rally for Coinbase’s stocks. Leading asset managers, such as BlackRock, Invesco, Valkyrie, and other financial giants, also have ambitions to enter this market.
However, the SEC has initiated a legal battle against Coinbase, accusing the platform of violating several rules and offering trading services involving allegedly unregistered securities, including MATIC, SOL, and ADA. The outcome of this dispute may have an impact on the SEC’s final decision regarding the spot BTC ETF.
Some experts argue that the SEC should approve a spot BTC ETF if interested firms can demonstrate the safety and compliance of such a product. Former SEC Chairman Jay Clayton has referred to the recent surge in filings for ETFs as an “incredible development.”
In an unexpected move, Ark Invest, the global asset manager led by cryptocurrency advocate Cathie Wood, sold 135,152 shares of Coinbase, equivalent to approximately $12 million. This is unusual behavior for the company, which typically accumulates Coinbase shares rather than divesting them. In February, Ark Invest purchased $9.2 million worth of COIN shares and added another $21.6 million shortly after the SEC filed its lawsuit against Coinbase last month.
Despite the sale of shares, Ark Invest has also joined the race for a spot BTC ETF. The company recently amended its filing, indicating that it will enter into a surveillance-sharing agreement (SSA) with “an operator of a United States-based spot trading platform for Bitcoin.”
CEO Cathie Wood remains optimistic and believes that Ark Invest will be the first to receive the long-awaited approval from the SEC.