Coinbase, the public-listed U.S. crypto exchange, saw a 13% increase in its shares yesterday, following an announcement from exchange operator Cboe regarding their collaboration with Coinbase to introduce a spot bitcoin exchange-traded fund (ETF). The application to initiate a bitcoin ETF by Fidelity was refiled by Cboe with the U.S. Securities and Exchange Commission (SEC) last Friday. Coinbase was specified as the crypto surveillance platform.
Coinbase shares ended Monday with an 11.7% rise, closing at $79.93, and have more than doubled this year. Bitcoin was valued at $31,029, a 1.32% increase, while Ethereum, the second-largest cryptocurrency, increased by 1.94% to $1,964.
According to a Reuters report, Cboe’s refiling addressed concerns from the SEC about the absence of named crypto-trading platforms in the original filing that would aid in identifying fraudulent activities within the bitcoin markets. The SEC had similar apprehensions about a recent application by Nasdaq for a spot bitcoin ETF from BlackRock.
Despite several attempts, the SEC has dismissed numerous spot bitcoin ETF applications over the past few years, as they failed to meet the standards set to counteract fraud and manipulative practices and to safeguard investors. The ETF industry is on the lookout for a solution to this issue.
