Following the news of a deal between Coinbase and Cboe’s BZX Exchange, shares of Coinbase, a well-known cryptocurrency exchange, increased by as much as 16% on Tuesday. With this agreement, Coinbase will continue to share surveillance over five of its spot bitcoin exchange-traded fund (ETF) applications.
Following the good news, shares of Coinbase rose as high as $92.15 per share. On Tuesday, the Securities and Exchange Commission (SEC) received amendments to the initial filings. These amendments confirmed the settlement of the agreement for all five ETF applications on June 21. The exchange had previously disclosed in documents that it “is expecting to enter into a surveillance-sharing agreement with Coinbase.”
The filing provided additional information about the agreement, mentioning that it was reached with Coinbase, Inc. It operates a prominent US-based spot trading platform for Bitcoin. The agreement involves a surveillance-sharing agreement (Spot BTC SSA) and an associated term sheet.
All five of Cboe’s ETF applications-Wise Origin, WisdomTree, VanEck, Invesco Galaxy, and ARK 21 Shares-were subject to modifications. In recent ETF applications, the presence of a surveillance-sharing agreement, or SSA, has been essential. These agreements are essential to preventing market manipulation, according to the SEC.
Additionally, as stated in a document dated June 29, Nasdaq, the securities exchange backing BlackRock’s application for a bitcoin ETF, also secured an agreement with Coinbase. The joint efforts of Coinbase and significant exchanges highlight how crucial it is to maintain strict market integrity and supervision.
Investor trust in the company strengthened due to the news of the surveillance-sharing agreements, resulting in a significant increase in the price of Coinbase’s stock. Such agreements are essential to ensure a safe and open environment for cryptocurrency trading as the crypto industry develops and regulatory measures gain popularity.