Coinbase Global (NASDAQ: COIN) witnessed a significant surge in its stock prices on Tuesday afternoon. The increase amounted to 9.78% following the announcement of an agreement between Coinbase and Cboe’s BZX Exchange. The agreement focuses on maintaining a surveillance-sharing arrangement for five of Coinbase’s spot bitcoin exchange-traded fund (ETF) applications.
The settlement of this agreement took place on June 21, as indicated in the updated filings submitted to the Securities and Exchange Commission (SEC) on Tuesday. The initial filings mentioned that the exchange had plans to establish a surveillance-sharing agreement with Coinbase.
“On June 21, 2023, the Exchange reached an agreement on terms with Coinbase, Inc., an operator of a United States-based spot trading platform for Bitcoin that represents a substantial portion of US-based spot trading platform for Bitcoin that represents a substantial portion of US-based and USD-denominated Bitcoin trading, to enter into a surveillance-sharing agreement (“Spot BTC SSA”) and executed an associated term sheet,” the filing stated.
The surveillance-sharing agreement (SSA) has become a crucial requirement for all recently submitted ETF applications. The Securities and Exchange Commission (SEC) has long emphasized the necessity of these agreements to prevent manipulation in the market.
Coinbase is not the only one making such agreements. Nasdaq, the securities exchange responsible for BlackRock’s Bitcoin ETF application, also reached a similar agreement with Coinbase. This agreement was mentioned in a filing dated June 29.
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