Coinbase is a publicly traded cryptocurrency exchange. During the crypto winters, the stock COIN underwent some major ups and downs. However, recently the stock has reported a significant appreciation.
As per the market data, COIN is appreciated by 9.5% reaching the $90 price mark signifying an 11-month high. Analysts have attributed the positive Coinbase share price have officially outperformed Bitcoin and gains in other virtual currency projects.
The latest rally of the cryptocurrency market was introduced by BlackRock when the firm announced a Bitcoin spot ETF filing. Since the announcement, various other commercial enterprises have rushed to follow suit considering the SEC application approval track record of BlackRock.
The main reason for Coinbase’s share price appreciation is the nomination by BlackRock in its surveillance sharing agreement. At the same time, Coinbase has also gotten a nomination for the same by Cboe.
Cboe’s Partnership Contract with Coinbase
Cboe has declared that the new service agreement with Coinbase exchange has been finalized. The notification informs stakeholders that the term contract was confirmed on 21st June 2023.
To this effect, Coinbase is now nominated as a cryptocurrency exchange where investors can access Bitcoin spot ETFs listings. At the same time, Coinbase is now authorized to execute the associated term sheet as part of its surveillance-sharing agreement.
Coinbase will now finalize the definitive contract that Spot Bitcoin ETF issuers are required to execute under the law. The firm may also manage the contracts for commodity-backed trust shares. The Spot Bitcoin SSA is a bilateral surveillance-sharing agreement between Cboe and Coinbase.
This contract will supplement the surveillance program of the exchange market. This SSA has a communications link between the two ISG members. In this manner, they will be able to gain access to the SSA-related data on Coinbase where the exchange deems it necessary.
Under the pretext of the new changes taking place at Coinbase, the firm is now set to list any approved spot Bitcoin ETFs on its platform. It means that Coinbase will receive the trading data from the traditional markets for orders and trading.
At the same time, the firm will be able to process the data to monitor the trading activity of the commodity-based trust shares. Meanwhile, the Cboe may also apply for additional information from Coinbase concerning spot Bitcoin ETF trading particulars.
On account of the latest changes, Coinbase shares have remained in the green zone throughout the trading week.
During the last 7 days, COIN shares crossed $90 on one occasion. At the same time, the SSA status of the cryptocurrency exchange is also a new business avenue for TradeFi and DeFi sectors. It also means that Coinbase exchange earnings will double.
The first source of income is the direct business from the existing and new crypto trading accounts. The second stream of revenue is on account of Bitcoin price appreciation. It means that Coinbase will maintain regulated and transparent Bitcoin reserves to back the spot ETF listings.
In addition to BlackRock, several other financial enterprises have also applied for a Bitcoin spot ETF application to SEC through Cboe. Considering these factors, it is not a surprise that COIN is amassing gains while Bitcoin prices also continue to surge reaching $31K.