Coinbase Global coin Stock Skyrockets As Cboe Includes the Exchange in Bitcoin Etf Application

Coinbase Global (COIN) Stock Skyrockets as Cboe Includes the Exchange in Bitcoin ETF Application

Shares of Coinbase Global, Inc. (NASDAQ: COIN) skyrocketed by 11.71% on Monday following a major announcement from exchange operator Cboe. Cboe revealed that it is joining forces with the leading crypto company to launch a spot Bitcoin exchange-traded fund (ETF).

This development comes after Cboe resubmitted its application to the U.S. Securities and Exchange Commission (SEC) last Friday. The application was filed on behalf of asset manager Fidelity and aims to launch a Bitcoin ETF. Importantly, the updated filing now identifies Coinbase as the strategic crypto platform partner that will aid in detecting and preventing market manipulation within the ETF.

Reuters reported that Cboe’s move was a strategic response to address the SEC’s concerns about the absence of named crypto-trading platforms in the original filing. The regulatory body had also expressed similar apprehensions to Nasdaq regarding a recent filing by BlackRock for a spot bitcoin ETF.

The SEC’s cautious approach to approving spot Bitcoin ETFs is well-known, having rejected numerous applications in the past for not meeting the stringent standards required to safeguard investors from fraudulent and manipulative practices. However, the ETF industry is actively seeking ways to address these concerns.

The recent surge in bitcoin, the world’s largest cryptocurrency, to a one-year high was spurred by BlackRock and Fidelity filing for bitcoin ETFs. Their filings coincided with the SEC’s lawsuit against Coinbase and Binance, accusing the platforms of violating regulatory rules. However, both Coinbase and Binance firmly deny these allegations.

As of now, Bitcoin is trading at $31,029, experiencing a 1.32% increase. Ethereum, the second-largest cryptocurrency globally, has also witnessed a rise of 1.94% to reach $1,964.