Coinbase stocks soared over 11% earlier this week following the mention of the exchange as a surveillance partner in Chicago Board Options Exchange (CBOE) refiled Bitcoin spot Exchange-Traded Fund (ETF) application. The CBOE refiled a spot Bitcoin ETF application on Friday last week on behalf of Fidelity, WisdomTree, VanEck and Invesco products.
The US Securities and Exchange Commission (SEC) had last week dismissed the latest Bitcoin ETF applications, saying they were inadequate because they lacked surveillance partners. Shortly after, CBOE refiled the applications, naming Coinbase as a surveillance partner.
Following the refiling, Coinbase stocks shot up on Monday’s session as investors seem optimistic about the outcome of the ETF application. According to the filing, the CBOE said that Coinbase will “supplement its ability to obtain information that would be helpful in detecting, investigating, and deterring fraud and market manipulation.”
There have been several applications for a Bitcoin ETF in the past, but only futures Bitcoin ETFs have been approved so far. However, investment managers are seeking a spot ETF, which is expected to boost investor confidence in the mainstream adoption of Bitcoin.
The SEC has refused to approve any of the ETF applications, citing fears of market manipulation. After meeting the condition of adding a surveillance partner, there may be hope for approval this time around.
Similarly, NASDAQ on Monday, 3 July refiled Bitcoin ETF applications on behalf of iShares Bitcoin Trust and BlackRock since BlackRock is seeking to launch its ETF through NASDAQ.
“The Spot BTC SSA is expected to be a bilateral surveillance-sharing agreement between Nasdaq and Coinbase that is intended to supplement the Exchange’s market surveillance program,” the filing reads.
This is coming at a time when Coinbase is in court, facing allegations of securities laws violation levelled against it by the SEC. It remains to be seen if the court case will disqualify Coinbase as a surveillance partner for the two refiled ETF applications.
However, with the two filings listing Coinbase as a surveillance partner, investors’ confidence may continue to soar with a resultant rise in the prices of Coinbase stocks in the coming days. The effect may also spill to Bitcoin, further fueling the ongoing rally.