For a month now, Coinbase has been under SEC’s regulatory scrutiny. However, that does not seem to have a permanent damage effect on the crypto exchange. As a matter of fact, the recent surge in Coinbase’s (COIN) shares shows that the exchange has a better survival advantage over Binance.US.
What a good week for Coinbase!!
In spite of a securities violation litigation filed in the United States against the Coinbase crypto exchange, the company’s stock has been on the rise recently.
Since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the crypto exchange for allegedly offering unregistered securities,. During that period COIN stock has gained over 50% in value.
According to the entity’s data, COIN shares increased by 51%, from approximately $52 on June 6 to $78.72 on July 7. In addition, the stock has gained approximately 133% over the past six months, compared to roughly 50% year-over-year.
Despite significant growth, some of the largest COIN holders have continued to trade their Coinbase shares. On July 6, a number of senior Coinbase executives, including CEO Brian Armstrong, sold approximately $6.9 million worth of COIN shares.
According to official SEC filings, the transactions included a 4,580 COIN sale by Coinbase board member Gokul Rajaram, a 1,818 COIN sale by chief legal officer Paul Grewal, and a 7,335 COIN sale by chief accounting officer Jennifer Jones.
Jones had previously sold 74,375 Coinbase shares on June 29 for a total of $5.2 million. While these execs have been selling their COIN shares on an ongoing basis, some of the largest COIN holders have continued to hodl.
According to portfolio updates, Cathie Wood’s investment firm ARK Invest has avoided all COIN transactions since purchasing an additional 400,000 shares of Coinbase stock at the beginning of June. This is consistent with Wood’s position that COIN shares will grow even larger, as the investor believes the crypto exchanges stock will rise in tandem with Bitcoin.
Coinbases advantage over Binance.US is clear
In the last month, two prominent crypto exchanges have come under fire in the United States. Gary Gensler’s message to crypto companies has been consistent since he became Wall Street’s chief cop two years ago: he will do whatever it takes to tame a world he compares to “the Wild West.”
Although Binance and Coinbase are not household names, they are well-known in the crypto community. On a daily basis, these platforms facilitate the exchange of digital assets worth billions of dollars, and their clientele is global.
Coinbase and Binance are both charged with neglecting to register their exchanges with the SEC. This comes as the SEC and CFTC continue to argue over who should regulate the crypto industry, which has been a grey area for a considerable amount of time.
As the battle between the SEC and these exchanges continues, it’s apparently clear that Coinbase will not suffer the same fate as Binance.US. Here is why. In the recent BTC ETFs filings, the crypto exchange has been named as the surveillance-sharing partner for BlackRock.
The Chicago Board Options Exchange also re-filed an application for asset manager Fidelity with the SEC. This filing also served as a push for the crypto exchange which was named the crypto platform to monitor market manipulation.
Coinbase’s critical participation in these applications demonstrates the company’s position as a Bitcoin industry leader in the United States. However, the crypto exchange’s main advantage resides not only in its surveillance capabilities but also in the additional services it will offer to the proposed fund issuers.
According to Bloomberg, Coinbase will execute an array of services for these companies, including custodial services and functioning as a trading platform for buying and selling Bitcoin.
BlackRock, Inc. is a multinational American investment firm headquartered in New York City. BlackRock, founded in 1988 as an enterprise risk management and fixed-income institutional asset manager, is the largest asset manager in the world as of April 14, 2023, with $9.09 trillion in assets under management.
By virtue of the assets they manage, it remains apparently clear that the salvation of Coinbase lies in the behemoth’s hands. If BlackRock’s BTC ETF is approved, the crypto exchange lies in wait to escape the SEC crypto-wrath hands.
