NEW YORK (Reuters) – Cboe Global Markets, the exchange operator, has taken a step forward in listing and trading shares of three spot bitcoin exchange-traded funds (ETFs), with one proposed by Fidelity. In order to meet regulatory standards, Cboe has included surveillance-sharing agreements with popular crypto-trading platform Coinbase. This move aims to prevent fraudulent activities and protect the interests of investors and the public.
Shares of Coinbase experienced a significant increase, closing at $89.15 on Tuesday and reaching a peak not seen since August 16 of the previous year. This surge in value indicates the growing demand for cryptocurrencies and investment opportunities related to them.
The U.S. Securities and Exchange Commission (SEC) has consistently rejected various spot bitcoin ETFs over the years, citing concerns about their ability to meet regulatory criteria. The SEC has emphasized the need to prevent fraudulent practices and manipulations in the cryptocurrency market. However, Cboe believes that by establishing comprehensive surveillance-sharing agreements with regulated markets, its proposals will be better aligned with the SEC’s requirements.
BlackRock, the largest asset manager globally, has also refiled an application to list a spot bitcoin ETF with the SEC. Similar to Cboe, BlackRock has included a surveillance-sharing agreement with Coinbase in its proposal. This collaboration aims to enhance transparency and oversight in the trading of bitcoin.
Cboe had previously expressed its intention to secure such an agreement with Coinbase, given that the platform facilitated approximately half of the U.S. dollar-bitcoin trading in May. This partnership is expected to further boost regulatory compliance and provide investors with a more secure trading environment.
However, it is worth noting that the SEC recently filed a lawsuit against Coinbase for failing to register as an exchange and for evading disclosure requirements. The lawsuit is part of a broader crackdown on cryptocurrency intermediaries. Coinbase has countered these allegations by stating that the SEC lacks the authority to pursue civil claims, as the assets traded on its platform are not considered securities.
As the regulatory landscape surrounding cryptocurrencies continues to evolve, it remains to be seen how the SEC will respond to Cboe’s amended applications and whether the ongoing legal battle with Coinbase will impact the outcome. Nevertheless, the collaboration between Cboe and Coinbase signals a positive step towards enhancing the integrity of the cryptocurrency market.
(Reporting by John McCrank in New York; Editing by Matthew Lewis)
Credit: The Star : Tech Feed
