NEW YORK ~ Exchange operator Cboe’s announcement that it will partner with the cryptocurrency startup in its bid to develop a spot bitcoin exchange-traded fund has sent Coinbase shares soaring, the most major U.S. cryptocurrency platform, down 13% on Monday. On Friday, Cboe again submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a bitcoin exchange-traded fund to be managed by Fidelity. In this filing, he identified Coinbase as the cryptocurrency platform that would help the exchange prevent and detect manipulation in the ETF.
According to Reuters, which cited a source familiar with the matter, Cboe tried to address SEC concerns that its initial filing did not specify which crypto trading platforms would help it detect market fraud. underlyings of bitcoin. A recent similar filing for a spot bitcoin ETF was filed by BlackRock, and according to the individual, the SEC also raised concerns about it to Nasdaq. Over the past few years, the Securities and Exchange Commission (SEC) has rejected dozens of applications for cash bitcoin exchange-traded funds (ETFs), saying the applications failed to meet requirements to prevent fraudulent and manipulative behavior and to protect investors. The company that deals with exchange traded funds is looking for ways to solve this problem.
On Monday, Coinbase shares ended the day with an 11.7% gain to $79.93, and they have more than doubled so far this year. After news broke that BlackRock and Fidelity were planning to introduce bitcoin exchange-traded funds (ETFs), the price of bitcoin, the world’s largest cryptocurrency, soared to a level not seen in over a year. The filings come weeks after the Securities and Exchange Commission (SEC) sued Coinbase and Binance, alleging a violation of its rules, in a sweeping regulatory crackdown on the digital asset industry. Both individuals deny the charges. Bitcoin was trading at $31,029, an increase of 1.32%, while Ethereum, the world’s second largest cryptocurrency, jumped 1.94% to $1,964.
