Cboe Global Markets, a prominent exchange operator, has revised five spot Bitcoin Exchange-Traded Fund (ETF) applications to incorporate a surveillance-sharing agreement (SSA) with Coinbase. The move aims to meet the regulatory standards set by the United States Securities and Exchange Commission (SEC) and enhance investor protection. This article delves into the recent developments surrounding the amended filings and their impact on the cryptocurrency industry.
Cboe’s Agreement with Coinbase :
Cboe recently amended its filings for ETFs from Invesco, VanEck, WisdomTree, Fidelity, and the joint fund by ARK Invest and 21Shares. The revisions now include an SSA with Coinbase, which was finalized on June 21. The SEC requires comprehensive surveillance-sharing agreements with regulated markets of significant size for underlying Bitcoin assets, as part of their efforts to prevent fraudulent activities. The involvement of Coinbase strengthens the applications’ compliance with these standards.
Growing Focus on Bitcoin ETFs :
Spot Bitcoin ETF applications have garnered significant attention in the industry. Notably, BlackRock, a $10 trillion asset management firm, filed an ETF with the SEC, joining Fidelity, Invesco, WisdomTree, and Valkyrie. Nasdaq, the U.S. stock exchange, also recently refilled its application for listing BlackRock’s ETF, including an SSA with Coinbase. These developments highlight the increasing interest in providing regulated and accessible investment vehicles for Bitcoin.
Coinbase’s Share Price Surge :
Cboe’s amended filings had a positive impact on Coinbase (COIN) shares, driving them up nearly 10% on June 11. This surge marked the highest price the shares had reached since August 16, according to Google Finance. Despite its involvement in Bitcoin ETF applications, Coinbase is currently entangled in a legal battle with the SEC over allegations of offering unregistered securities in the form of certain cryptocurrencies.
Cboe’s move to amend Bitcoin ETF applications by incorporating a surveillance-sharing agreement with Coinbase reflects the industry’s commitment to meeting regulatory standards and enhancing investor protection. The involvement of major players like BlackRock and Nasdaq further emphasizes the growing interest in regulated Bitcoin investment vehicles. However, Coinbase’s legal dispute with the SEC underscores the challenges faced by cryptocurrency platforms operating in a regulatory gray area. As the crypto industry continues to evolve, the development of Bitcoin ETFs remains a significant focal point for both market participants and regulators.