Friday, June 21, 2024

Coinbase Shares Soar by Over 30% After Nasdaq and Cboe Modify Bitcoin ETF Applications

Coinbase, the renowned cryptocurrency exchange, witnessed a substantial surge in its shares during the first half of 2023. This week, its stock skyrocketed by more than 30% after Nasdaq and Cboe resubmitted applications for spot bitcoin exchange-traded funds (ETFs) on behalf of various fund managers. The revised applications outlined Coinbase’s role as a collaborator in surveillance-sharing agreements (SSAs) once the ETFs receive approval.

Coinbase Stock Soars Over 30% as ETF Managers Select It as Surveillance-Sharing Partner

Shares of Coinbase (Nasdaq: COIN) experienced a remarkable increase of 30.82% over the past week, and the data from the past six months indicates a surge of 131% against the U.S. dollar. Despite this impressive growth, the company’s shares are still 79% lower than their all-time high.

On September 30, 2021, each COIN share was valued at $319, whereas now it stands at $79.93. The recent surge in value can be attributed to multiple ETF managers applying for spot bitcoin ETFs and designating Coinbase as their SSA partner. Nasdaq and Cboe facilitated this process for several fund sponsors, as indicated in the latest amendments.

As of July 4, 2023, COIN has seen a 131% increase in value against the U.S. dollar over the past six months.

Alongside these positive developments, Coinbase is currently facing a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Coinbase violated various securities regulations and failed to register its staking-as-a-service program as required. In response, Coinbase filed a motion to dismiss the case, claiming that it does not fall under the definition of a securities exchange, broker, or clearing agency as per federal securities laws. Coinbase emphasized that while Congress is considering regulations for digital currencies, there have been no legislative measures granting the SEC the power to retroactively regulate digital asset exchanges.

While COIN has performed exceptionally well this week against the U.S. dollar, several other publicly traded companies have also seen a rise in their stock prices due to the recent surge in the cryptocurrency market. Companies such as Riot Platforms, Microstrategy, Cleanspark, Bitfarms, and more have recently experienced double-digit returns. However, Coinbase has outperformed its competitors in terms of gains in cryptocurrency-related shares over the past week.

What are your opinions on Coinbase’s significant increase in shares and its potential role as a surveillance-sharing agreement collaborator for upcoming bitcoin ETFs? Feel free to share your thoughts and perspectives on this matter in the comments section below.

Frequently Asked Questions (FAQs) about Cryptocurrency

What caused the surge in Coinbase shares?

Coinbase shares experienced a surge of over 30% after Nasdaq and Cboe amended Bitcoin ETF applications, designating Coinbase as a surveillance-sharing agreement (SSA) collaborator. This development increased investor confidence and drove up the stock prices.

How has Coinbase stock performed in the past week?

Coinbase stock witnessed a remarkable increase of 30.82% in the past week. Over the course of six months, the stock has surged by 131% against the U.S. dollar.

What is Coinbase’s role as a surveillance-sharing agreement collaborator?

Coinbase has been selected by multiple ETF managers as their surveillance-sharing agreement (SSA) partner. This means that, upon ETF approval, Coinbase will collaborate with these managers in sharing surveillance data and ensuring compliance in the Bitcoin ETF market.

Is Coinbase facing any legal challenges?

Yes, Coinbase is currently contending with a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Coinbase violated securities regulations and failed to register its staking-as-a-service program as required by law. Coinbase has filed a motion to dismiss the case, asserting its position and the absence of legislative measures granting retroactive regulatory powers to the SEC.

How has the cryptocurrency market influenced other publicly traded companies?

The recent surge in the cryptocurrency market has led to rising stock prices for several publicly traded companies. Alongside Coinbase, companies such as Riot Platforms, Microstrategy, Cleanspark, and Bitfarms have experienced double-digit returns in their crypto-related shares. However, Coinbase has outperformed its competitors in terms of gains in the past week.

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