In an exciting development for cryptocurrency enthusiasts, shares of Coinbase, the popular crypto exchange, experienced a significant surge on Tuesday, jumping as much as 16%. The boost came after Coinbase reached an agreement with Cboe’s BZX Exchange to maintain a surveillance-sharing agreement for five of its spot bitcoin exchange-traded fund (ETF) applications.
At their peak, Coinbase shares climbed to $92.15, reflecting the market’s positive response to the news. Amendments to the original filings, filed with the Securities and Exchange Commission (SEC) on Tuesday, confirmed that the agreement had been settled on June 21 for each of the mentioned applications. The earlier filings had already indicated Coinbase’s intention to enter into a surveillance-sharing agreement.
The filing stated, “On June 21, 2023, the Exchange reached an agreement on terms with Coinbase, Inc., an operator of a United States-based spot trading platform for Bitcoin that represents a substantial portion of US-based and USD denominated Bitcoin trading, to enter into a surveillance-sharing agreement (‘Spot BTC SSA’) and executed an associated term sheet.” These amendments were filed for all five of Cboe’s ETF applications, including Wise Origin, WisdomTree, VanEck, Invesco Galaxy, and ARK 21Shares.
The surveillance-sharing agreement, commonly referred to as SSA, has become a crucial component of recent ETF applications. The SEC has long emphasized the necessity of these agreements to prevent market manipulation, and their inclusion in the applications enhances their chances of approval.
In addition to the agreement with Cboe’s BZX Exchange, Coinbase also secured a similar deal with Nasdaq, the securities exchange responsible for BlackRock’s bitcoin ETF application. According to a filing dated June 29, the agreement with Coinbase was reached, signaling the growing importance of such partnerships in the cryptocurrency industry.
These agreements underscore the commitment of major players in the market to foster transparency and mitigate potential risks associated with bitcoin ETFs. By partnering with reputable and trusted platforms like Coinbase, exchanges aim to address regulatory concerns and ensure the integrity of the market.
As the crypto industry continues to evolve and gain mainstream acceptance, collaborations between exchanges and regulatory bodies become crucial in establishing a robust and secure environment for investors. The positive market response to the news of Coinbase’s surveillance-sharing agreements highlights the growing confidence in the cryptocurrency market and its potential for further expansion.