• Coinbase’s share rose 16% on Tuesday after it reached an agreement with Cboe to maintain a surveillance-sharing agreement for five of its spot bitcoin ETF applications.
• The SEC has stated that agreements such as the surveillance-sharing agreement are necessary to prevent market manipulation.
• Nasdaq also reached an agreement with Coinbase in June.
Coinbase Shares Rise After Reaching Cboe Surveillance Sharing Agreement
Shares of Coinbase jumped as much as 16% Tuesday after the crypto exchange 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. The shares climbed to a high of $92.15.
Why is Surveillance Sharing Necessary?
The Securities and Exchange Commission (SEC) has stated for years that these agreements are necessary to prevent market manipulation. 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, also referred to as SSA, has become an integral part of all ETF applications filed recently.
Nasdaq Also Reached An Agreement With Coinbase
A filing dated June 29 said Nasdaq, the securities exchange behind BlackRock’s bitcoin ETF application, also reached an agreement with Coinbase.
What Was the Agreement Settled On?
The earlier filings stated that the exchange “is expecting to enter into a surveillance-sharing agreement with Coinbase.” On June 21st 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 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 and executed an associated term sheet.
In conclusion this article explains why it was important news when Coinbaseshare rose 16% on Tuesday after they reachanagreementwithCboeto maintaina surveillances haringagreementforfiveofitsspotbitcoinETFapplicationsandalsoexplainshowthiswasrelatedtotheSecuritiesandExchangeCommission’sstatementforpreventingmarketmanipulationandalsodiscussesanotheragreementreachedbyNasdaqundertheBlackRock’sBitcoinETFapplicationinJune2023