Coinspeaker
Bitcoin Stocks Coinbase and MicroStrategy Rally Following as Cboe Refiles Applications for Spot Bitcoin ETFs
Bitcoin-related stocks have seen a rally following the Cboe BZX Exchange’s refiling of multiple applications for spot Bitcoin exchange-traded funds (ETFs). The general sentiment among members of the crypto and Bitcoin communities seems increasingly positive as people are optimistic about the United States Securities and Exchange Commission (SEC) finally approving a spot Bitcoin ETF this year.
On Monday, July 3, Coinbase Global Inc (NASDAQ: COIN) shares closed at $79.93 after climbing nearly 12% on the day. As of press time, COIN had further increased 1.2% and hit $80.89 in after-hours trading. This continues quite the green trading trajectory as COIN has risen 36% in the last month and more than 25% in three months. Over the past year, COIN investors have seen a 63% return on their holdings, plus nearly 126% year-to-date (YTD).
Enterprise business intelligence platform MicroStrategy (NASDAQ: MSTR) also closed higher after rising more than 10% and ending the day at $377.84, its highest in over a year. MSTR has also added extra weight, rising 2.69% to $388 in after-hours trading. MSTR’s recent history has also been impressive, with nearly 37% in the last month and $27 in 3 months. MicroStrategy shares have seen a 126.56% increase in the last year, and 167% since January.
Coinbase stock has had a good year despite the company’s problems with the SEC. On June 6, the SEC indicted Coinbase for running an unregistered securities exchange and broker. The Commission said the company has been in violation since 2019 and has been “[depriving] investors of critical protections”. Coinbase responded by arguing that the SEC’s lawsuit is outside of its authority, and that the highlighted assets tagged as securities do not qualify. The court has set the case for July 13.
Bitcoin Stocks and Spot Rally Drawn from ETF Applications
The Cboe has helped a few interested firms with their applications for a spot Bitcoin ETF. In the past few weeks, Cboe has helped WisdomTree, ARK Invest, and Fidelity Investments. Giant asset manager BlackRock (NYSE: BLK) also applied for a spot Bitcoin ETF in mid-June through Nasdaq.
Many believe the chance of a spot Bitcoin ETF is high this year, a sentiment that may be driving the Bitcoin spot and stock rally. BlackRock seems more likely to win the SEC’s approval as it is a traditional firm, more in the SEC’s preference. Also, BlackRock refiled its application to include a Spot BTC SSA. According to the Nasdaq amendment, the SSA is a “bilateral surveillance-sharing agreement” intended to address the SEC’s fears of fraud and market manipulation.
Before now, the SEC has rejected all applications for a spot Bitcoin ETF, citing inadequate measures for fraud prevention. Recently, the Winklevoss brothers rebuked the SEC for its continued refusal to approve a spot Bitcoin ETF. The Winklevoss Bitcoin Trust filed the first-ever spot BTC ETF application in 2013.
