Coinbase (COIN), one of the prominent cryptocurrency exchanges in the United States, has experienced a significant increase in its Coinbase stock prices. This surge comes as BlackRock (BLK), the world’s largest asset manager, revealed Coinbase IPO price prediction after its re-filed Bitcoin exchange-traded fund (ETF) application.

Freepik

BlackRock’s Updated Proposal Boosts Coinbase

On July 3, Nasdaq disclosed that BlackRock had updated its proposal for a spot Bitcoin ETF, incorporating new specifics about a “surveillance-sharing agreement” with Coinbase. This development ignited a bullish response in the market, propelling Coinbase shares to soar by nearly 12% within a day. The details in the application outline an agreement between Nasdaq and Coinbase from last month.

The surveillance-sharing agreement is intended to supplement the exchange’s market surveillance program. With its help, Nasdaq with gain access to BTC trade data. In the near future, BlackRock’s Bitcoin ETF might gain approval. Therefore, Nasdaq expects to leverage the data obtained from Coinbase in monitoring and surveilling trading activities. This collaboration between a prominent cryptocurrency exchange and a renowned asset manager marks a significant day in the crypto market landscape, demonstrating the growing intersection between crypto and mainstream finance.

Regulatory Landscape and Market Response

The regulatory landscape surrounding cryptocurrencies in the United States remains a hotbed of speculation and anticipation. While the Securities and Exchange Commission (SEC) has granted approval to a number of futures-based ETFs, a spot-based ETF, which is physically backed by the underlying asset rather than derivatives like CME contracts, has not yet been given the green light.

The news of BlackRock’s partnership with Coinbase has injected renewed optimism into the market. Following the announcement, Coinbase shares saw an upsurge of nearly 12% in a single day. Consequently, COIN is trading just below $80, representing an increase of 11.71%. The company’s stock has been on a bullish trend since the beginning of 2023. It has outperformed the overall crypto market, which has gained around 50% in the same period. Notably, larger crypto assets such as Bitcoin and Ethereum have also seen massive surges since the year began, with BTC currently trading above $30,000 after briefly touching $31,000 yesterday.

Coinbase Named in Refiled Bitcoin ETF Filing, COIN Shares Rise

In a related development, shares of Coinbase (COIN) have experienced an upward movement after news that exchange operator Cboe Global Markets has refiled its spot Bitcoin ETF application. The U.S. Securities and Exchange Commission (SEC) has previously rejected the initial application on behalf of Coinbase alternatives, BlackRock and Fidelity. SEC claimed that they made the decision because of the unclear nature of the agreement.

Coinbase and the Nasdaq Stock Exchange have refiled an application for the proposed Bitcoin ETF. The refiling of the agreement now includes a “surveillance-sharing agreement”. While the SEC reviews this new application involving Coinbase, the regulatory body is also in the midst of a lawsuit it filed against the crypto exchange last month, alleging that the company was selling unregistered securities.

Coinbase Commerce Solidifies Amid Partnership Endorsements

Coinbase has responded to the SEC’s lawsuit by filing a motion to dismiss. The company claimed that the regulatory body lacks jurisdiction and that its transactions do not qualify as securities. Despite the regulatory challenges, COIN shares have surged by 11% since the latest ETF filing. Currently, the shares are up 154% from their all-time low of $31, trading just below $80.

The increased attention and partnership endorsements from prominent financial entities like BlackRock and Cboe are further solidifying Coinbase stock in the cryptocurrency market. As the industry continues to evolve and regulations take shape, Coinbase remains at the forefront, navigating the complexities and driving innovation in the crypto space.

More By This Author: