Coinbase (NASDAQ:COIN) stock surged significantly after the Cboe named the cryptocurrency exchange in its recent Bitcoin ETF application.
Shares of Coinbase, the largest US-based digital asset exchange, surged 13% yesterday after the exchange operator Cboe stated that it would be working with Coinbase in order to introduce a spot Bitcoin exchange-traded fund (ETF).
Cboe recently refilled an application with the US Securities and Exchange Commission (SEC) in order to introduce a Bitcoin exchange-traded fund by asset manager Fidelity.
In that particular filing, it has notably mentioned Coinbase as the crypto firm that will assist the exchange monitor manipulation in the ETF.
Cboe aimed to address the specified SEC concerns that its initial filing didn’t name the crypto-trading firm that will assist it with identifying fraudulent activities in the underlying bitcoin markets, Reuters reported while citing a source familiar with the issue.
The SEC also expressed similar concerns with Nasdaq regarding a similar filing for a spot bitcoin ETF from BlackRock, the source noted.
The SEC has notably rejected many different spot bitcoin ETF applications during the past few years, noting that they didn’t meet the standards established to curb fraudulent and manipulative activities while ensuring investor protection.
The ETF sector is now attempting to find a way to address that issue.
Coinbase shares have closed up by almost 12% at just under $80.00 this past Monday, and have more than doubled in value during 2023.
Bitcoin, the leading digital currency, surged to a yearly high in June, following the BlackRock and Fidelity announcement about filing to launch bitcoin ETFs.
Those filings were announced shortly after the US SEC sued crypto giants Coinbase and Binance, while noting that they had violated applicable regulatory guidelines.
