Coinbase shares surged 16% on Tuesday before closing 9.87% higher, following the announcement of a master watch-sharing agreement with Cboe’s BZX Exchange, marking a pivotal development in the management of spot Bitcoin ETF applications.
On Tuesday, July 11, a significant increase was recorded in Coinbase shares (COIN), which rose as much as 16% to $92.15. This rise in the company’s share price is primarily attributed to A Historic agreement The cryptocurrency exchange managed to secure it with Cboe’s BZX Exchange. Notably, the contract focuses on participating in monitoring related to the five exchange-traded fund (ETF) applications.
The stock was worth $89.15 – up 9.87% – at the market close today.
Completion of the agreement was noted on June 21, according to reviews of initial filings filed with the US Securities and Exchange Commission. In the early documents submitted, the exchange hinted at its intention to solidify the Watch Share Contract with Coinbase, a significant development for the cryptocurrency industry.
According to the final contract in June this year, Coinbase agreed to a monitoring sharing agreement, referred to as the “Spot BTC SSA.” In addition to the agreement, a term sheet was implemented outlining the terms and conditions of the deal, signaling a major shift in the cryptocurrency exchange landscape.
Further, the modifications filed relate to all five of Cboe’s ETF applications. Notable entities such as Wise Origin, WisdomTree, VanEck, Invesco Galaxy and ARK 21Shares are set to benefit from the agreement. Each of these applications would benefit from the enhanced oversight and reduced risk of tampering that a control-sharing pact brings.
In fact, the import of Monitoring Share Agreements, often called SSAs, has skyrocketed recently, and has become an essential component of all new ETF implementations. This focus stems from the SEC’s long-held view that such collaborations are useful in deterring potential market manipulation and ensuring fair trading practices.
Additionally, Nasdaq, the stock exchange responsible for facilitating BlackRock’s bitcoin ETF, has secured a similar agreement with Coinbase. This arrangement, noted in a filing dated June 29, highlights the growing trend of watch-sharing contracts in the cryptocurrency industry.
These developments underline the evolving industry and increasingly stringent regulatory landscape, shaping the future of cryptocurrency exchanges and their business practices.