When Nasdaq mentioned Coinbase as a monitoring partner for BlackRock’s Bitcoin ETF, COIN shares soared by over 10%. This strategic collaboration could pave the way for the long-awaited SEC approval of the Bitcoin ETF.
A crucial new step was taken in the quest for the Bitcoin ETF as Nasdaq filed new documents with the SEC, mentioning Coinbase, the Californian cryptocurrency exchange platform, as a monitoring partner for BlackRock’s proposed fund. This announcement triggered a surge of over 10% in COIN shares.
A positive impact on Coinbase ‘s (COIN) price?
Recent applications for spot Bitcoin ETFs have been deemed “inadequate” by the SEC, but Coinbase’s involvement as a monitoring partner could be a game-changer. Bloomberg analysts point out that monitoring the crypto market is considered “essential” to gaining approval from the SEC, which has expressed concerns about market manipulation.
TradFi heavyweight BlackRock is now joined by other major asset managers such as Fidelity, who have also submitted new Bitcoin ETF applications. These major players are looking to capitalize on the growing craze for Bitcoin cash exchange-traded funds.
The choice of Coinbase as a monitoring partner is significant, as the platform is responsible for more than half of all bitcoin dollar exchanges in the US this year. This dominant position reinforces Coinbase’s credibility and ability to provide reliable market surveillance.
The announcement also had a positive impact on Coinbase’s share price (COIN), which has already risen sharply this month in tandem with the Bitcoin price rally. The stock jumped by over 10%, reaching around $80.
The Bitcoin ETF update also had a slight impact on the price of Bitcoin itself, which recorded a 1.3% rise in 24 hours. Currently, the cryptocurrency stands at around $31,000, having briefly exceeded $31,300 the previous day, a level not seen since May 2022.