On Monday, shares of Coinbase, the largest crypto platform in the United States, surged 13% after exchange operator Cboe announced it was collaborating with the crypto platform to launch a spot bitcoin exchange-traded fund.
In addition, Bitcoin-related equities rallied in response to news that Cboe’s BZX Exchange had resubmitted its applications for multiple spot bitcoin exchange-traded funds (ETFs) on Friday.
Coinbase rise from the SEC shackles
Friday, Cboe resubmitted to the U.S. Securities and Exchange Commission (SEC) an application to establish a bitcoin exchange-traded fund managed by Fidelity. In this filing, Coinbase was identified as the crypto platform that would assist the exchange in policing ETF manipulation.
According to Reuters, citing a source familiar with the matter, Cboe sought to address SEC concerns that its initial filing did not identify the crypto-trading platforms that would help it detect fraud in the underlying bitcoin markets.
Cboe has been working with a number of providers, including Fidelity, WisdomTree, and ARK Invest, to finally get an application for a spot bitcoin ETF approved by the US Securities and Exchange Commission (SEC). In the meantime, BlackRock (BLK) is doing the same thing with Nasdaq.
On Monday, Coinbase shares closed up 11.7% at $79.93, having more than doubled this year.
Bitcoin, the world’s largest crypto, reached a more than one-year high last month after BlackRock and Fidelity announced plans to launch bitcoin exchange-traded funds (ETFs).
Bitcoin was up 1.32% to $31, 029, and Ethereum, the world’s second-largest crypto, was up 1.94% to $1,964.
Microstrategy (MSTR), a business intelligence company that holds more than $4.6 billion worth of bitcoin (BTC), also saw its shares surge, increasing by approximately 10% to $375, their greatest level in over a year.
The SEC rejects multiple BTC ETFs
In recent years, the SEC has rejected dozens of spot bitcoin ETF applications, citing noncompliance with standards intended to prevent fraudulent and manipulative practices and protect investors. The ETF industry is attempting to come up with a solution to this concern.
Those filings come just weeks after the SEC sued Coinbase and Binance, alleging rule violations in a major regulatory crackdown on the digital asset market. The claims are denied by both parties.
Crypto analysts view the increasing likelihood of the SEC ultimately approving a spot bitcoin ETF as bullish for BTC because it could facilitate adoption by traditional investors with stock accounts.
Nasdaq Resubmits BlackRock’s Bitcoin ETF Application to the SEC
BlackRock Inc. has refiled documents with US authorities via Nasdaq to include fresh details to its plan for a Bitcoin-focused exchange-traded fund. On Monday, the exchange filed additional paperwork with the US Securities and Exchange Commission indicating that Coinbase Global Inc. will provide market surveillance in support of the world’s largest asset manager’s proposed ETF.
Analysts believe that monitoring the crypto market will be critical to obtaining SEC clearance for a spot Bitcoin ETF. The monitoring might significantly reduce fraud and market manipulation, two of the main reasons the SEC has rejected about 30 spot Bitcoin ETF applications to date.
BlackRock’s initial filing in mid-June triggered a scramble among other issuers for comparable files, as well as a surge for cryptocurrencies in general. Bitcoin has gained more than 10% in the last month and is up more than 80% since the beginning of the year. Many lovers of digital assets are excited about the prospect of a future spot ETF since it might offer better accessibility for average investors.
