Following several SSA agreements Coinbase made with several financial institutions, the firm's stock price increased by almost 10% in the last 24 hours.
Cboe Global Markets, the exchange network for global derivatives, foreign exchange, digital assets and securities trading solutions, has revised its proposals for five Bitcoin spot Exchange-Traded Funds (ETFs) to feature a surveillance-sharing agreement with renowned cryptocurrency exchange, Coinbase.
Based on the documents issued to the United States Securities and Exchange Commission on July 11th, Cboe altered ETF submissions by well-known entities like WisdomTree, Invesco, Fidelity, VanEck, and a collaborative effort from ARK Invest and 21Shares.
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Cboe declared it had successfully "reached an agreement on terms with Coinbase," cementing their surveillance-sharing agreements (SSAs) on June 21st.
The primary filings for these ETFs implied an impending SSA prior to the potential launch of these financial products.
The SSAs' goal is to align with SEC requirements to ward off fraudulent behavior and ensure investor safety. As stated by the SEC on March 10th:
<An exchange requires> an exhaustive surveillance-sharing agreement with a regulated market of substantial size related to the underlying or reference Bitcoin assets.
Bitcoin spot ETF proposals have recently been at the forefront of the industry's focus. The applications submitted by Fidelity, Invesco, WisdomTree, and Valkyrie follow in the footsteps of BlackRock.
It is worth noting that, on June 29th, the US stock exchange, Nasdaq, resubmitted its application to list BlackRock's ETF, similarly incorporating an SSA with Coinbase.
These filings by Cboe had a bullish effect on Coinbase (COIN) shares. On July 11th, the shares experienced a nearly 10% surge in the last 24 hours, attaining their highest value since August 16th. After SEC filed a lawsuit against Coinbase over allegations of selling unregistered securities, the firm's stock price grew by over 50%.
As Cboe ventures into Bitcoin ETFs with its new surveillance-sharing agreement with Coinbase, it underscores the regulatory complexities and challenges that continue to shape the ever-evolving landscape of the crypto industry.
